Zacks Investment Research Downgrades Cintas (NASDAQ:CTAS) to Hold

Cintas (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, December 27th.

According to Zacks, “Cintas recorded strong second-quarter fiscal 2018 results backed by healthy top-line growth. The company aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base. In addition, the successful integration of G&K Services has expanded Cintas’ customer profile and augmented its revenues. With superior quarterly performance, the company has increased its earlier guidance for fiscal 2018. Cintas has also outperformed the industry year to date. However, volatility in raw material prices and third-party supply constraints remain potential headwinds for the company. Moreover, a persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves instead of outsourcing them to Cintas, which has resulted in some loss of businesses. In addition, Cintas remains susceptible to foreign currency woes, affecting its margin.”

CTAS has been the subject of a number of other reports. Robert W. Baird reissued an “outperform” rating and issued a $185.00 target price (up from $165.00) on shares of Cintas in a research report on Friday, December 22nd. Barclays upped their price objective on Cintas from $150.00 to $160.00 and gave the company an “overweight” rating in a research note on Wednesday, September 27th. Deutsche Bank reaffirmed a “hold” rating and set a $140.00 price objective (up from $130.00) on shares of Cintas in a research note on Wednesday, September 27th. Stifel Nicolaus reaffirmed a “hold” rating and set a $138.00 price objective (up from $136.00) on shares of Cintas in a research note on Wednesday, September 27th. Finally, Morgan Stanley reaffirmed an “underweight” rating and set a $127.00 price objective (up from $117.00) on shares of Cintas in a research note on Wednesday, September 27th. One analyst has rated the stock with a sell rating, eight have given a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. Cintas has an average rating of “Hold” and a consensus price target of $153.73.

Shares of Cintas (CTAS) opened at $160.46 on Wednesday. The stock has a market capitalization of $17,060.00, a PE ratio of 35.90, a P/E/G ratio of 2.48 and a beta of 0.87. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.77 and a quick ratio of 1.53. Cintas has a 1 year low of $112.96 and a 1 year high of $163.45.

Cintas (NASDAQ:CTAS) last announced its earnings results on Thursday, December 21st. The business services provider reported $1.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.27 by $0.04. The firm had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.59 billion. Cintas had a return on equity of 23.23% and a net margin of 9.23%. The business’s revenue was up 26.4% on a year-over-year basis. During the same period in the prior year, the firm earned $1.15 EPS. research analysts anticipate that Cintas will post 5.44 earnings per share for the current year.

Several hedge funds have recently modified their holdings of the company. Hutchens Investment Management Inc purchased a new position in shares of Cintas during the 4th quarter worth approximately $311,000. Parametric Portfolio Associates LLC raised its stake in shares of Cintas by 6.0% during the 3rd quarter. Parametric Portfolio Associates LLC now owns 190,175 shares of the business services provider’s stock worth $27,438,000 after buying an additional 10,727 shares in the last quarter. Visionary Asset Management Inc. purchased a new position in shares of Cintas during the 3rd quarter worth approximately $239,000. GSA Capital Partners LLP purchased a new position in shares of Cintas during the 3rd quarter worth approximately $712,000. Finally, Smith Shellnut Wilson LLC ADV purchased a new position in shares of Cintas during the 3rd quarter worth approximately $386,000. 66.65% of the stock is owned by institutional investors and hedge funds.

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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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