Cintas (CTAS) Sets New 12-Month High Following Earnings Beat

Shares of Cintas Co. (NASDAQ:CTAS) hit a new 52-week high during trading on Friday following a stronger than expected earnings report. The stock traded as high as $204.12 and last traded at $201.68, with a volume of 49859 shares trading hands. The stock had previously closed at $196.00.

The business services provider reported $1.77 EPS for the quarter, beating the Zacks’ consensus estimate of $1.67 by $0.10. Cintas had a net margin of 11.69% and a return on equity of 22.86%. The company had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same period in the prior year, the firm posted $0.75 EPS. The company’s quarterly revenue was up 9.1% compared to the same quarter last year.

CTAS has been the topic of a number of recent analyst reports. Barclays increased their price objective on shares of Cintas from $200.00 to $210.00 and gave the company an “overweight” rating in a research report on Friday. ValuEngine raised shares of Cintas from a “hold” rating to a “buy” rating in a research report on Wednesday, May 2nd. Zacks Investment Research downgraded shares of Cintas from a “buy” rating to a “hold” rating in a research report on Monday, June 25th. JPMorgan Chase & Co. increased their target price on shares of Cintas from $183.00 to $188.00 and gave the company an “overweight” rating in a research report on Friday, March 23rd. Finally, Stifel Nicolaus increased their target price on shares of Cintas from $145.00 to $162.00 and gave the company a “hold” rating in a research report on Friday, March 23rd. Five equities research analysts have rated the stock with a hold rating, six have issued a buy rating and two have issued a strong buy rating to the company’s stock. Cintas has a consensus rating of “Buy” and an average price target of $182.20.

In related news, VP Thomas E. Frooman sold 11,500 shares of the stock in a transaction 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 directly owns 106,926 shares of the company’s stock, valued at approximately $18,814,698.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider James Phillip Holloman sold 7,523 shares of the stock in a transaction 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 directly owns 133,491 shares in the company, valued at $22,861,668.66. The disclosure for this sale can be found here. Company insiders own 18.90% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of CTAS. Advisor Group Inc. grew its position in shares of Cintas by 21.3% in the 4th quarter. Advisor Group Inc. now owns 5,410 shares of the business services provider’s stock valued at $845,000 after buying an additional 949 shares during the last quarter. Teachers Advisors LLC boosted its stake in Cintas by 1.7% during the 4th quarter. Teachers Advisors LLC now owns 110,584 shares of the business services provider’s stock worth $17,232,000 after purchasing an additional 1,816 shares during the period. Cornerstone Capital Management Holdings LLC. boosted its stake in Cintas by 10.0% during the 4th quarter. Cornerstone Capital Management Holdings LLC. now owns 16,188 shares of the business services provider’s stock worth $2,521,000 after purchasing an additional 1,470 shares during the period. Ladenburg Thalmann Financial Services Inc. boosted its stake in Cintas by 10.9% during the 4th quarter. Ladenburg Thalmann Financial Services Inc. now owns 7,921 shares of the business services provider’s stock worth $1,233,000 after purchasing an additional 776 shares during the period. Finally, LPL Financial LLC boosted its stake in Cintas by 10.4% during the 4th quarter. LPL Financial LLC now owns 33,009 shares of the business services provider’s stock worth $5,144,000 after purchasing an additional 3,097 shares during the period. 67.06% of the stock is currently owned by hedge funds and other institutional investors.

The company has a market capitalization of $20.55 billion, a price-to-earnings ratio of 44.95, a price-to-earnings-growth ratio of 2.30 and a beta of 0.91. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.86 and a current ratio of 2.16.

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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