Cintas (NASDAQ:CTAS) Shares Gap Down – Here’s Why

Cintas Co. (NASDAQ:CTAS) shares gapped down before the market opened on Thursday . The stock had previously closed at $204.39, but opened at $192.66. Cintas shares last traded at $190.57, with a volume of 631,129 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CTAS. UBS Group raised their price objective on Cintas from $219.00 to $240.00 and gave the company a “buy” rating in a report on Thursday, September 26th. The Goldman Sachs Group raised their price target on shares of Cintas from $212.00 to $236.00 and gave the stock a “buy” rating in a research note on Thursday, September 26th. Robert W. Baird upped their price objective on shares of Cintas from $194.00 to $209.00 and gave the company a “neutral” rating in a research note on Thursday, September 26th. Truist Financial increased their price objective on shares of Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a report on Tuesday, September 17th. Finally, Wells Fargo & Company boosted their target price on Cintas from $184.00 to $191.00 and gave the stock an “underweight” rating in a report on Thursday, September 26th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, Cintas presently has an average rating of “Hold” and a consensus price target of $200.77.

Cintas Stock Performance

The company has a current ratio of 1.53, a quick ratio of 1.33 and a debt-to-equity ratio of 0.50. The company has a market capitalization of $75.05 billion, a price-to-earnings ratio of 46.99, a price-to-earnings-growth ratio of 4.15 and a beta of 1.33. The stock’s fifty day simple moving average is $215.20 and its 200-day simple moving average is $203.00.

Cintas (NASDAQ:CTAS) last released its earnings results on Thursday, December 19th. The business services provider reported $1.09 EPS for the quarter, topping the consensus estimate of $1.01 by $0.08. The firm had revenue of $2.56 billion during the quarter, compared to analysts’ expectations of $2.56 billion. Cintas had a return on equity of 39.56% and a net margin of 16.80%. Cintas’s revenue for the quarter was up 7.8% on a year-over-year basis. During the same period in the previous year, the firm posted $3.61 EPS. Analysts predict that Cintas Co. will post 4.23 EPS for the current year.

Cintas Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 13th. Shareholders of record on Friday, November 15th were given a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 0.84%. The ex-dividend date was Friday, November 15th. Cintas’s dividend payout ratio is presently 39.39%.

Institutional Trading of Cintas

A number of hedge funds and other institutional investors have recently bought and sold shares of CTAS. Wellington Management Group LLP lifted its stake in Cintas by 211.7% during the third quarter. Wellington Management Group LLP now owns 778,884 shares of the business services provider’s stock worth $160,357,000 after purchasing an additional 529,005 shares during the last quarter. Atria Investments Inc boosted its holdings in shares of Cintas by 291.7% in the 3rd quarter. Atria Investments Inc now owns 22,321 shares of the business services provider’s stock valued at $4,595,000 after buying an additional 16,623 shares in the last quarter. Allspring Global Investments Holdings LLC grew its position in shares of Cintas by 343.9% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 111,599 shares of the business services provider’s stock valued at $22,976,000 after buying an additional 86,460 shares during the last quarter. Creative Planning raised its stake in Cintas by 34.4% during the 2nd quarter. Creative Planning now owns 19,351 shares of the business services provider’s stock worth $13,551,000 after acquiring an additional 4,957 shares in the last quarter. Finally, Lord Abbett & CO. LLC purchased a new stake in Cintas in the third quarter valued at $23,779,000. 63.46% of the stock is currently owned by institutional investors and hedge funds.

Cintas Company Profile

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.