Zacks Investment Research cut shares of Cintas (NASDAQ:CTAS) from a buy rating to a hold rating in a research note issued to investors on Monday morning.
According to Zacks, “Over the past three months Cintas’ shares have outperformed the industry. The company perceives that increased business with existing customers and a widened client base will aid in strengthening its revenues going forward. The successful integration of G&K Services has further expanded Cintas’ customer profile and augmented its revenues. The company maintains a strong balance sheet with adequate liquidity to meet its working capital requirements. However, the stock looks overvalued compared to the industry in the past three-month period. Integration cost associated with G&K Services acquisition and implementation expenses of new enterprise resource planning system might continue to aggravate Cintas’ costs, in turn weigh over margins in the quarters ahead. Over the past 30 days, Zacks Consensus Estimate for the stock has remained unchanged for fiscal 2019.”
Other analysts have also issued reports about the stock. Robert W. Baird reissued a buy rating and set a $200.00 target price on shares of Cintas in a research note on Friday, March 23rd. ValuEngine upgraded shares of Cintas from a hold rating to a buy rating in a report on Thursday, March 1st. Goldman Sachs Group initiated coverage on shares of Cintas in a report on Tuesday, March 27th. They set a conviction-buy rating and a $210.00 price target on the stock. Stifel Nicolaus boosted their price target on shares of Cintas from $145.00 to $162.00 and gave the company a hold rating in a report on Friday, March 23rd. Finally, JPMorgan Chase & Co. boosted their price target on shares of Cintas from $183.00 to $188.00 and gave the company an overweight rating in a report on Friday, March 23rd. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating, six have issued a buy rating and two have given a strong buy rating to the stock. Cintas has a consensus rating of Buy and a consensus target price of $173.30.
CTAS stock opened at $185.56 on Monday. Cintas has a 12 month low of $123.42 and a 12 month high of $194.09. The company has a market cap of $19.67 billion, a P/E ratio of 40.96, a price-to-earnings-growth ratio of 2.20 and a beta of 0.92. The company has a quick ratio of 1.86, a current ratio of 2.16 and a debt-to-equity ratio of 0.88.
In other Cintas news, VP Thomas E. Frooman sold 11,500 shares of the company’s stock in a transaction that occurred on Monday, May 7th. The shares were sold at an average price of $175.96, for a total value of $2,023,540.00. Following the transaction, the vice president now owns 106,926 shares in the company, valued at approximately $18,814,698.96. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider James Phillip Holloman sold 7,523 shares of the company’s stock in a transaction that occurred on Monday, April 30th. The shares were sold at an average price of $171.26, for a total transaction of $1,288,388.98. Following the completion of the transaction, the insider now owns 133,491 shares in the company, valued at approximately $22,861,668.66. The disclosure for this sale can be found here. 18.90% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in the business. Brown Advisory Inc. acquired a new position in Cintas in the 1st quarter valued at approximately $247,027,000. Mount Yale Investment Advisors LLC acquired a new position in Cintas in the 1st quarter valued at approximately $565,000. Brasada Capital Management LP increased its stake in Cintas by 1.8% in the 1st quarter. Brasada Capital Management LP now owns 38,064 shares of the business services provider’s stock valued at $6,493,000 after buying an additional 668 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in Cintas in the 1st quarter valued at approximately $2,601,000. Finally, HighPoint Advisor Group LLC acquired a new position in Cintas in the 1st quarter valued at approximately $224,000. Hedge funds and other institutional investors own 66.79% of the company’s stock.
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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