Cintas (CTAS) Lowered to Hold at Zacks Investment Research

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

According to Zacks, “Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base. The company has a strong balance sheet with adequate liquidity to meet its working capital requirements. The company has consistently returned significant cash to its shareholders through dividends and share repurchases. Cintas has outperformed the industry on an average in the past three months. However, Cintas faces stiff competition from national, regional and local companies on various factors such as design, price, quality, service and convenience to customers.  Cintas procures raw materials from a wide variety of domestic and international suppliers, making it susceptible to market risks which are beyond its control. The company’s significant international operations expose it to the risk of fluctuation in foreign exchange rates, which in turn often impacts its financial results.”

A number of other equities research analysts have also recently weighed in on the stock. Morgan Stanley lifted their price target on shares of Cintas from $130.00 to $151.00 and gave the company an “underweight” rating in a research report on Wednesday, January 31st. William Blair reiterated a “buy” rating on shares of Cintas in a research report on Monday, January 1st. Oppenheimer reiterated a “hold” rating on shares of Cintas in a research report on Friday, December 22nd. Robert W. Baird restated an “outperform” rating and issued a $185.00 price objective (up previously from $165.00) on shares of Cintas in a report on Friday, December 22nd. Finally, JPMorgan Chase & Co. restated a “buy” rating and issued a $183.00 price objective on shares of Cintas in a report on Friday, December 22nd. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and five have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $155.91.

Shares of Cintas (CTAS) traded down $0.47 on Wednesday, hitting $166.65. 543,000 shares of the company’s stock were exchanged, compared to its average volume of 584,207. Cintas has a 1-year low of $117.21 and a 1-year high of $169.96. The firm has a market capitalization of $17,796.41, a PE ratio of 33.20, a PEG ratio of 2.56 and a beta of 0.91. The company has a current ratio of 1.77, a quick ratio of 1.53 and a debt-to-equity ratio of 0.99.

Cintas (NASDAQ:CTAS) last announced its quarterly earnings results on Thursday, December 21st. The business services provider reported $1.31 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.04. Cintas had a net margin of 9.23% and a return on equity of 23.23%. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.59 billion. During the same period last year, the business earned $1.15 earnings per share. The business’s revenue for the quarter was up 26.4% on a year-over-year basis. equities analysts forecast that Cintas will post 5.45 earnings per share for the current year.

In related news, insider James Phillip Holloman sold 12,386 shares of Cintas stock in a transaction that occurred on Friday, January 12th. The shares were sold at an average price of $160.92, for a total value of $1,993,155.12. Following the completion of the transaction, the insider now owns 141,328 shares in the company, valued at $22,742,501.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 18.90% of the company’s stock.

A number of institutional investors have recently modified their holdings of the stock. Artisan Partners Limited Partnership lifted its stake in Cintas by 29.1% in the third quarter. Artisan Partners Limited Partnership now owns 1,771,864 shares of the business services provider’s stock worth $255,645,000 after acquiring an additional 398,874 shares during the last quarter. Egerton Capital UK LLP purchased a new position in Cintas in the fourth quarter worth approximately $239,268,000. Frontier Capital Management Co. LLC lifted its stake in Cintas by 1.4% in the third quarter. Frontier Capital Management Co. LLC now owns 1,046,259 shares of the business services provider’s stock worth $150,954,000 after acquiring an additional 14,223 shares during the last quarter. Congress Asset Management Co. MA lifted its stake in Cintas by 3.3% in the fourth quarter. Congress Asset Management Co. MA now owns 992,320 shares of the business services provider’s stock worth $154,633,000 after acquiring an additional 32,155 shares during the last quarter. Finally, Wells Fargo & Company MN lifted its stake in Cintas by 50.7% in the fourth quarter. Wells Fargo & Company MN now owns 715,166 shares of the business services provider’s stock worth $111,443,000 after acquiring an additional 240,495 shares during the last quarter. Institutional investors own 66.19% of the company’s stock.

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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.

Analyst Recommendations for Cintas (NASDAQ:CTAS)

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