Tobam Takes Position in Cintas Co. (NASDAQ:CTAS)

Tobam bought a new position in shares of Cintas Co. (NASDAQ:CTAS) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 258 shares of the business services provider’s stock, valued at approximately $181,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Checchi Capital Advisers LLC boosted its position in Cintas by 0.9% during the second quarter. Checchi Capital Advisers LLC now owns 1,651 shares of the business services provider’s stock worth $1,156,000 after purchasing an additional 14 shares in the last quarter. Field & Main Bank increased its stake in Cintas by 25.0% during the second quarter. Field & Main Bank now owns 75 shares of the business services provider’s stock worth $53,000 after acquiring an additional 15 shares during the last quarter. Capital CS Group LLC increased its stake in Cintas by 1.9% during the second quarter. Capital CS Group LLC now owns 920 shares of the business services provider’s stock worth $644,000 after acquiring an additional 17 shares during the last quarter. Andina Capital Management LLC increased its stake in Cintas by 3.3% during the second quarter. Andina Capital Management LLC now owns 538 shares of the business services provider’s stock worth $377,000 after acquiring an additional 17 shares during the last quarter. Finally, Harbor Investment Advisory LLC increased its stake in Cintas by 5.4% during the first quarter. Harbor Investment Advisory LLC now owns 349 shares of the business services provider’s stock worth $240,000 after acquiring an additional 18 shares during the last quarter. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Wall Street Analyst Weigh In

CTAS has been the topic of a number of research analyst reports. Robert W. Baird reaffirmed a “neutral” rating and set a $775.00 target price (up previously from $750.00) on shares of Cintas in a report on Friday, July 19th. Wells Fargo & Company raised Cintas to a “strong sell” rating in a report on Tuesday, August 13th. Stifel Nicolaus raised their price target on Cintas from $667.00 to $798.00 and gave the stock a “hold” rating in a report on Friday, July 19th. Redburn Atlantic initiated coverage on Cintas in a research report on Friday, August 9th. They issued a “neutral” rating and a $670.00 target price on the stock. Finally, Royal Bank of Canada cut Cintas from an “outperform” rating to a “sector perform” rating and set a $725.00 target price on the stock. in a research report on Monday, July 15th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $742.36.

Cintas Price Performance

NASDAQ CTAS traded up $4.24 during trading on Friday, reaching $803.49. 98,527 shares of the company traded hands, compared to its average volume of 369,197. The company has a market cap of $81.52 billion, a price-to-earnings ratio of 55.15, a P/E/G ratio of 4.06 and a beta of 1.31. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74. Cintas Co. has a 1-year low of $474.74 and a 1-year high of $807.98. The stock’s 50 day moving average price is $743.64 and its two-hundred day moving average price is $690.45.

Cintas’s stock is set to split before the market opens on Thursday, September 12th. The 4-1 split was announced on Thursday, May 2nd. The newly created shares will be payable to shareholders after the closing bell on Wednesday, September 11th.

Cintas (NASDAQ:CTAS) last issued its earnings results on Thursday, July 18th. The business services provider reported $3.99 EPS for the quarter, beating the consensus estimate of $3.80 by $0.19. The company had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.47 billion. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The business’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.33 EPS. As a group, analysts anticipate that Cintas Co. will post 16.62 EPS for the current year.

Cintas Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th will be paid a $1.56 dividend. The ex-dividend date is Thursday, August 15th. This is a positive change from Cintas’s previous quarterly dividend of $1.35. This represents a $6.24 dividend on an annualized basis and a yield of 0.78%. Cintas’s dividend payout ratio is presently 43.09%.

Cintas declared that its Board of Directors has initiated a stock buyback program on Tuesday, July 23rd that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the business services provider to repurchase up to 1.3% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Gerald S. Adolph sold 1,100 shares of the company’s stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $765.72, for a total transaction of $842,292.00. Following the sale, the director now owns 31,452 shares in the company, valued at $24,083,425.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 15.10% 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.