Cintas Corp. (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Cintas procures raw materials from a wide variety of domestic and international suppliers, making it susceptible to market risks which are beyond its control. In addition, Cintas faces stiff competition from national, regional and local companies on various factors such as design, price, quality, service and convenience to the customers. As such, the company has to continually invest in value drivers to fend competition, which further weakens its profitability. Moreover, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services instead of outsourcing these services to Cintas, which have resulted in loss of businesses. However, Cintas’ investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach to focus on the relative value of the various sectors within the broader industry.”
A number of other analysts also recently issued reports on the stock. Macquarie assumed coverage on shares of Cintas Corp. in a report on Thursday, August 25th. They issued a “neutral” rating and a $130.00 price objective for the company. Nomura reissued a “buy” rating and issued a $135.00 price objective (up previously from $124.00) on shares of Cintas Corp. in a report on Thursday, August 25th. KeyCorp boosted their target price on shares of Cintas Corp. from $110.00 to $130.00 and gave the company an “overweight” rating in a research report on Wednesday, August 17th. Robert W. Baird upgraded shares of Cintas Corp. from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $111.00 to $140.00 in a research report on Wednesday, August 17th. Finally, Barclays PLC upgraded shares of Cintas Corp. from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $110.00 to $130.00 in a research report on Wednesday, August 17th. Three analysts have rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $112.36.
Cintas Corp. (NASDAQ:CTAS) opened at 114.71 on Tuesday. The firm has a 50-day moving average of $113.14 and a 200-day moving average of $98.65. The company has a market capitalization of $11.95 billion, a PE ratio of 18.38 and a beta of 0.85. Cintas Corp. has a 52 week low of $80.00 and a 52 week high of $119.94.
Cintas Corp. (NASDAQ:CTAS) last posted its quarterly earnings data on Tuesday, July 19th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.00 by $0.08. The firm earned $1.27 billion during the quarter, compared to the consensus estimate of $1.25 billion. Cintas Corp. had a net margin of 14.14% and a return on equity of 24.16%. During the same quarter in the previous year, the firm posted $0.86 EPS. Equities analysts expect that Cintas Corp. will post $4.42 earnings per share for the current fiscal year.
In other Cintas Corp. news, Director Gerald S. Adolph sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, July 25th. The shares were sold at an average price of $108.12, for a total transaction of $216,240.00. Following the sale, the director now directly owns 11,590 shares of the company’s stock, valued at approximately $1,253,110.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 19.10% of the company’s stock.
Large investors have recently bought and sold shares of the company. Williams Jones & Associates LLC raised its stake in Cintas Corp. by 10.8% in the second quarter. Williams Jones & Associates LLC now owns 13,794 shares of the company’s stock worth $1,354,000 after buying an additional 1,344 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in Cintas Corp. during the second quarter worth $343,000. Kentucky Retirement Systems acquired a new stake in Cintas Corp. during the second quarter worth $723,000. Mason Street Advisors LLC acquired a new stake in Cintas Corp. during the second quarter worth $1,146,000. Finally, Royal Bank of Canada raised its stake in Cintas Corp. by 108.2% in the second quarter. Royal Bank of Canada now owns 353,658 shares of the company’s stock worth $34,705,000 after buying an additional 183,781 shares during the last quarter. 65.78% of the stock is currently owned by hedge funds and other institutional investors.
About Cintas Corp.
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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