Cintas (NASDAQ:CTAS) Shares Gap Up on Better-Than-Expected Earnings

Shares of Cintas Co. (NASDAQ:CTAS) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $193.46, but opened at $204.54. Cintas shares last traded at $211.01, with a volume of 837,499 shares traded.

The business services provider reported $1.13 earnings per share for the quarter, topping the consensus estimate of $1.05 by $0.08. Cintas had a return on equity of 40.62% and a net margin of 17.23%. The company had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.60 billion. During the same quarter in the prior year, the business posted $3.84 EPS. The firm’s quarterly revenue was up 8.4% compared to the same quarter last year.

Cintas Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Friday, February 14th were given a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 0.74%. The ex-dividend date was Friday, February 14th. Cintas’s dividend payout ratio (DPR) is 37.59%.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Morgan Stanley increased their target price on Cintas from $185.00 to $202.00 and gave the company an “equal weight” rating in a research note on Thursday, December 12th. Royal Bank of Canada reissued a “sector perform” rating and issued a $215.00 price objective on shares of Cintas in a report on Friday, December 20th. The Goldman Sachs Group decreased their price target on shares of Cintas from $236.00 to $211.00 and set a “buy” rating on the stock in a research report on Friday, December 20th. Robert W. Baird reduced their price objective on Cintas from $209.00 to $200.00 and set a “neutral” rating for the company in a research note on Friday, December 20th. Finally, Truist Financial lowered their target price on Cintas from $225.00 to $215.00 and set a “buy” rating on the stock in a research report on Friday, December 20th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $199.79.

Institutional Investors Weigh In On Cintas

Several hedge funds and other institutional investors have recently made changes to their positions in CTAS. China Universal Asset Management Co. Ltd. increased its stake in Cintas by 28.4% in the 4th quarter. China Universal Asset Management Co. Ltd. now owns 6,563 shares of the business services provider’s stock worth $1,199,000 after buying an additional 1,450 shares during the period. KMG Fiduciary Partners LLC boosted its holdings in shares of Cintas by 121.8% in the 4th quarter. KMG Fiduciary Partners LLC now owns 11,545 shares of the business services provider’s stock valued at $2,109,000 after buying an additional 6,341 shares in the last quarter. Wellington Management Group LLP raised its position in shares of Cintas by 211.7% in the 3rd quarter. Wellington Management Group LLP now owns 778,884 shares of the business services provider’s stock valued at $160,357,000 after purchasing an additional 529,005 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Cintas by 137.5% in the third quarter. JPMorgan Chase & Co. now owns 2,222,527 shares of the business services provider’s stock valued at $457,574,000 after buying an additional 1,286,668 shares during the last quarter. Finally, Annex Advisory Services LLC increased its stake in shares of Cintas by 1.6% in the fourth quarter. Annex Advisory Services LLC now owns 127,441 shares of the business services provider’s stock worth $23,283,000 after acquiring an additional 1,988 shares during the period. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Cintas Price Performance

The company has a current ratio of 1.58, a quick ratio of 1.38 and a debt-to-equity ratio of 0.47. The firm has a 50-day simple moving average of $200.57 and a two-hundred day simple moving average of $208.92. The company has a market capitalization of $84.94 billion, a price-to-earnings ratio of 51.01, a P/E/G ratio of 3.98 and a beta of 1.41.

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.