Cintas (CTAS) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Cintas (NASDAQ:CTAS) from a buy rating to a hold rating in a research report released on Thursday, November 9th.

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 analysts also recently weighed in on the company. Robert W. Baird restated an outperform rating and set a $165.00 target price (up previously from $152.00) on shares of Cintas in a research note on Thursday, September 28th. William Blair restated an ourperform rating on shares of Cintas in a research note on Wednesday, September 27th. BidaskClub downgraded Cintas from a hold rating to a sell rating in a research note on Monday, July 31st. Stifel Nicolaus restated a hold rating and set a $138.00 target price (up previously from $136.00) on shares of Cintas in a research note on Wednesday, September 27th. Finally, Oppenheimer restated a hold rating on shares of Cintas in a research note on Wednesday, September 27th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the company’s stock. The company presently has a consensus rating of Hold and a consensus target price of $144.67.

Shares of Cintas (NASDAQ:CTAS) opened at $152.03 on Thursday. Cintas has a twelve month low of $112.96 and a twelve month high of $152.83. The firm has a market capitalization of $15,702.22, a price-to-earnings ratio of 30.02, a PEG ratio of 2.30 and a beta of 0.87. The company has a quick ratio of 1.57, a current ratio of 1.84 and a debt-to-equity ratio of 0.99.

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

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

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Cintas by 2.1% in the 2nd quarter. Vanguard Group Inc. now owns 9,266,612 shares of the business services provider’s stock worth $1,167,964,000 after purchasing an additional 191,507 shares during the last quarter. BlackRock Inc. boosted its position in shares of Cintas by 2.2% in the 2nd quarter. BlackRock Inc. now owns 6,607,462 shares of the business services provider’s stock worth $832,804,000 after purchasing an additional 142,118 shares during the last quarter. Artisan Partners Limited Partnership boosted its position in shares of Cintas by 29.1% in the 3rd quarter. Artisan Partners Limited Partnership now owns 1,771,864 shares of the business services provider’s stock worth $255,645,000 after purchasing an additional 398,874 shares during the last quarter. FMR LLC boosted its position in shares of Cintas by 20.3% in the 2nd quarter. FMR LLC now owns 1,705,533 shares of the business services provider’s stock worth $214,965,000 after purchasing an additional 288,029 shares during the last quarter. Finally, Janus Henderson Group PLC boosted its position in shares of Cintas by 10,719.0% in the 2nd quarter. Janus Henderson Group PLC now owns 1,113,279 shares of the business services provider’s stock worth $140,318,000 after purchasing an additional 1,102,989 shares during the last quarter. 66.89% of the stock is owned by institutional investors.

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Cintas 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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