Zacks Investment Research Downgrades Cintas (CTAS) to Hold

Zacks Investment Research cut shares of Cintas (NASDAQ:CTAS) from a buy rating to a hold rating in a research report sent to investors on Tuesday.

According to Zacks, “Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base to include fresh business segments. The company also identifies additional product and service opportunities for its current and future customers to expand its portfolio. Cintas has a strong balance sheet with adequate liquidity to meet its working capital requirements. Cintas has outperformed the industry on an average in the last three months. However, 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 has to continually invest in value drivers to fend off competition, which further weakens its profitability. Moreover, some customers have started to perform certain in-house services themselves instead of outsourcing them to Cintas, resulting in some loss of businesses.”

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Several other research firms also recently weighed in on CTAS. William Blair restated a buy rating on shares of Cintas in a report on Monday, January 1st. Morgan Stanley upped their price objective on shares of Cintas from $130.00 to $151.00 and gave the stock an underweight rating in a report on Wednesday, January 31st. JPMorgan Chase upped their price objective on shares of Cintas from $183.00 to $188.00 and gave the stock an overweight rating in a report on Friday, March 23rd. Robert W. Baird restated an outperform rating and set a $185.00 price objective (up previously from $165.00) on shares of Cintas in a report on Friday, December 22nd. Finally, BidaskClub upgraded shares of Cintas from a sell rating to a hold rating in a report on Tuesday, December 5th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, five have issued a buy rating and two have given a strong buy rating to the stock. The company presently has a consensus rating of Buy and an average price target of $168.55.

Cintas stock opened at $166.74 on Tuesday. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.85 and a current ratio of 2.15. Cintas has a 12-month low of $119.54 and a 12-month high of $178.34. The firm has a market cap of $18,317.20, a P/E ratio of 36.81, a P/E/G ratio of 2.46 and a beta of 0.90.

Cintas (NASDAQ:CTAS) last released its earnings results on Thursday, March 22nd. The business services provider reported $1.37 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.27 by $0.10. Cintas had a net margin of 11.69% and a return on equity of 22.86%. The company had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter in the previous year, the company earned $1.11 EPS. Cintas’s quarterly revenue was up 26.6% compared to the same quarter last year. equities research analysts expect that Cintas will post 5.82 EPS for the current fiscal year.

In other news, insider James Phillip Holloman sold 12,386 shares of the stock in a transaction dated 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 sale, the insider now owns 141,328 shares in the company, valued at $22,742,501.76. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 18.90% of the company’s stock.

Several hedge funds have recently made changes to their positions in the company. Cambridge Investment Research Advisors Inc. raised its holdings in shares of Cintas by 54.7% in the fourth quarter. Cambridge Investment Research Advisors Inc. now owns 2,203 shares of the business services provider’s stock valued at $343,000 after purchasing an additional 779 shares during the last quarter. Colonial Trust Advisors purchased a new stake in shares of Cintas in the fourth quarter valued at about $343,000. Xact Kapitalforvaltning AB raised its holdings in shares of Cintas by 7.8% in the fourth quarter. Xact Kapitalforvaltning AB now owns 16,435 shares of the business services provider’s stock valued at $2,561,000 after purchasing an additional 1,185 shares during the last quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its holdings in shares of Cintas by 37.2% in the fourth quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 32,891 shares of the business services provider’s stock valued at $5,125,000 after purchasing an additional 8,912 shares during the last quarter. Finally, We Are One Seven LLC purchased a new stake in shares of Cintas in the fourth quarter valued at about $417,000. Institutional investors own 66.56% of the company’s stock.

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Cintas Company Profile

Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia. 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, and carpet and tile cleaning services, as well as sells uniforms directly.

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