Cintas Co. (NASDAQ:CTAS) Short Interest Update

Cintas Co. (NASDAQ:CTAS) was the target of a large decline in short interest during the month of July. As of July 31st, there was short interest totalling 1,350,000 shares, a decline of 7.5% from the July 15th total of 1,460,000 shares. Approximately 1.6% of the shares of the company are short sold. Based on an average trading volume of 405,500 shares, the days-to-cover ratio is presently 3.3 days.

Cintas Price Performance

Shares of CTAS stock opened at $774.66 on Wednesday. The company has a quick ratio of 1.52, a current ratio of 1.74 and a debt-to-equity ratio of 0.47. The company has a market cap of $78.60 billion, a P/E ratio of 53.50, a P/E/G ratio of 4.06 and a beta of 1.31. Cintas has a twelve month low of $474.74 and a twelve month high of $777.50. The business has a fifty day simple moving average of $732.89 and a 200 day simple moving average of $683.64.

Shares of Cintas are scheduled to split before the market opens on Thursday, September 12th. The 4-1 split was announced on Thursday, May 2nd. The newly issued shares will be distributed to shareholders after the closing bell on Wednesday, September 11th.

Cintas (NASDAQ:CTAS) last announced its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.99 EPS for the quarter, beating analysts’ consensus estimates of $3.80 by $0.19. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The firm had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.47 billion. During the same quarter last year, the firm posted $3.33 earnings per share. The company’s revenue for the quarter was up 8.2% compared to the same quarter last year. On average, sell-side analysts forecast that Cintas will post 16.62 EPS for the current fiscal year.

Cintas declared that its board has authorized a stock buyback program on Tuesday, July 23rd that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 1.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Cintas Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th will be issued a $1.56 dividend. This represents a $6.24 dividend on an annualized basis and a dividend yield of 0.81%. The ex-dividend date is Thursday, August 15th. This is a positive change from Cintas’s previous quarterly dividend of $1.35. Cintas’s dividend payout ratio (DPR) is currently 43.09%.

Analysts Set New Price Targets

A number of research analysts have commented on CTAS shares. Wells Fargo & Company raised Cintas to a “strong sell” rating in a report on Tuesday, August 13th. Redburn Atlantic began coverage on Cintas in a report on Friday, August 9th. They set a “neutral” rating and a $670.00 target price on the stock. Morgan Stanley increased their target price on Cintas from $575.00 to $625.00 and gave the stock an “equal weight” rating in a report on Friday, July 19th. Stifel Nicolaus increased their target price on Cintas from $667.00 to $798.00 and gave the stock a “hold” rating in a report on Friday, July 19th. Finally, Baird R W lowered Cintas from a “strong-buy” rating to a “hold” rating in a report on Friday, July 19th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $742.36.

Insider Buying and Selling

In other Cintas news, Director Gerald S. Adolph sold 1,100 shares of the company’s stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $765.72, for a total value of $842,292.00. Following the transaction, the director now directly owns 31,452 shares of the company’s stock, valued at approximately $24,083,425.44. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. 15.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. International Assets Investment Management LLC purchased a new position in shares of Cintas during the 4th quarter valued at $388,630,000. Greenleaf Trust raised its stake in shares of Cintas by 2.3% during the 4th quarter. Greenleaf Trust now owns 1,943 shares of the business services provider’s stock valued at $1,171,000 after purchasing an additional 44 shares during the period. abrdn plc raised its stake in shares of Cintas by 70.1% during the 4th quarter. abrdn plc now owns 36,345 shares of the business services provider’s stock valued at $21,904,000 after purchasing an additional 14,975 shares during the period. Lindbrook Capital LLC raised its stake in shares of Cintas by 13.6% during the 4th quarter. Lindbrook Capital LLC now owns 611 shares of the business services provider’s stock valued at $368,000 after purchasing an additional 73 shares during the period. Finally, Verdence Capital Advisors LLC bought a new stake in shares of Cintas during the 4th quarter valued at $215,000. Hedge funds and other institutional investors own 63.46% of the company’s stock.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.