Zacks Investment Research Downgrades Cintas Corporation (CTAS) to Hold

Zacks Investment Research cut shares of Cintas Corporation (NASDAQ:CTAS) from a buy rating to a hold rating in a research report released on Thursday.

According to Zacks, “Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base. The acquisition of G&K Services is anticipated to be accretive to Cintas’ earnings. The combined company is likely to cater to over one billion business customers with an extended product portfolio and additional processing capacity. Cintas has outperformed the industry year to date. However, volatility in raw material prices and third-party supply constraints remain potential headwinds for the company. Moreover, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves instead of outsourcing them to Cintas, which have resulted in some loss of businesses. Higher investments in value drivers to fend off stiff competition from other players in the market remain another challenge.”

Several other research analysts have also recently commented on CTAS. Robert W. Baird reissued an outperform rating and set a $165.00 price target (up from $152.00) on shares of Cintas Corporation in a research report on Thursday, September 28th. William Blair reissued an ourperform rating on shares of Cintas Corporation in a research report on Wednesday, September 27th. BidaskClub cut Cintas Corporation from a hold rating to a sell rating in a research report on Monday, July 31st. Stifel Nicolaus reissued a hold rating and set a $138.00 price target (up from $136.00) on shares of Cintas Corporation in a research report on Wednesday, September 27th. Finally, Oppenheimer Holdings, Inc. reissued a hold rating on shares of Cintas Corporation in a research report on Wednesday, September 27th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and two have issued a buy rating to the stock. Cintas Corporation has a consensus rating of Hold and a consensus price target of $143.00.

Cintas Corporation (NASDAQ:CTAS) traded up $0.67 during trading hours on Thursday, hitting $146.10. The company had a trading volume of 415,100 shares, compared to its average volume of 537,411. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.57 and a current ratio of 1.84. The company has a market capitalization of $15,531.07, a P/E ratio of 29.69, a PEG ratio of 2.27 and a beta of 0.87. Cintas Corporation has a fifty-two week low of $106.99 and a fifty-two week high of $152.83.

Cintas Corporation (NASDAQ:CTAS) last issued its quarterly earnings results on Tuesday, September 26th. The business services provider reported $1.48 EPS for the quarter, beating the consensus estimate of $1.30 by $0.18. Cintas Corporation had a return on equity of 23.71% and a net margin of 9.79%. The firm had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the prior year, the firm posted $1.26 earnings per share. The business’s quarterly revenue was up 27.2% compared to the same quarter last year. research analysts anticipate that Cintas Corporation will post 5.36 EPS for the current year.

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The firm also recently disclosed an annual dividend, which will be paid on Friday, December 8th. Stockholders of record on Friday, November 10th will be given a $1.62 dividend. This represents a dividend yield of 1.07%. This is a boost from Cintas Corporation’s previous annual dividend of $1.33. The ex-dividend date is Thursday, November 9th. Cintas Corporation’s dividend payout ratio (DPR) is presently 31.89%.

In other news, Director Gerald S. Adolph sold 2,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $133.69, for a total value of $267,380.00. Following the completion of the sale, the director now directly owns 13,135 shares of the company’s stock, valued at $1,756,018.15. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 18.90% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in CTAS. Mountain Capital Investment Advisors Inc bought a new position in shares of Cintas Corporation during the second quarter worth approximately $120,000. Parallel Advisors LLC increased its stake in shares of Cintas Corporation by 4.4% during the second quarter. Parallel Advisors LLC now owns 900 shares of the business services provider’s stock worth $121,000 after purchasing an additional 38 shares during the period. QS Investors LLC increased its stake in shares of Cintas Corporation by 1.0% during the second quarter. QS Investors LLC now owns 995 shares of the business services provider’s stock worth $125,000 after purchasing an additional 10 shares during the period. YorkBridge Wealth Partners LLC increased its stake in shares of Cintas Corporation by 3.2% during the second quarter. YorkBridge Wealth Partners LLC now owns 1,056 shares of the business services provider’s stock worth $133,000 after purchasing an additional 33 shares during the period. Finally, First Personal Financial Services increased its stake in shares of Cintas Corporation by 0.8% during the second quarter. First Personal Financial Services now owns 1,147 shares of the business services provider’s stock worth $145,000 after purchasing an additional 9 shares during the period. Institutional investors own 65.67% of the company’s stock.

Cintas Corporation Company Profile

Cintas Corporation is a provider of corporate identity uniforms through rental and sales programs, as well as a provider of related business services, including entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, first aid and safety services and fire protection products and services.

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