Citigroup Lowers Cintas (NASDAQ:CTAS) to Sell

Citigroup downgraded shares of Cintas (NASDAQ:CTAS) from a neutral rating to a sell rating in a research note released on Friday, Marketbeat reports. They currently have $570.00 price target on the business services provider’s stock, up from their previous price target of $530.00.

Several other equities analysts have also recently weighed in on CTAS. StockNews.com upgraded shares of Cintas from a hold rating to a buy rating in a research note on Monday, March 25th. Oppenheimer reissued a market perform rating on shares of Cintas in a report on Monday, April 1st. Robert W. Baird increased their target price on shares of Cintas from $660.00 to $750.00 and gave the stock an outperform rating in a report on Thursday, March 28th. UBS Group increased their target price on shares of Cintas from $680.00 to $790.00 and gave the stock a buy rating in a report on Thursday, March 28th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of Cintas from $629.00 to $726.00 and gave the stock a hold rating in a report on Thursday, March 28th. One analyst has rated the stock with a sell rating, five have issued a hold rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of Moderate Buy and an average price target of $664.07.

Cintas Stock Performance

Shares of Cintas stock opened at $682.81 on Friday. The stock has a market cap of $69.28 billion, a price-to-earnings ratio of 47.16, a PEG ratio of 3.80 and a beta of 1.27. The firm’s 50-day moving average is $672.18 and its 200 day moving average is $619.43. Cintas has a 1 year low of $458.32 and a 1 year high of $705.74. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.38 and a quick ratio of 2.03.

Shares of Cintas are scheduled to split on the morning of Thursday, September 12th. The 4-1 split was announced on Thursday, May 2nd. The newly minted shares will be payable to shareholders after the market closes on Wednesday, September 11th.

Cintas (NASDAQ:CTAS) last posted its earnings results on Wednesday, March 27th. The business services provider reported $3.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.58 by $0.26. The business had revenue of $2.41 billion for the quarter, compared to analysts’ expectations of $2.39 billion. Cintas had a net margin of 15.98% and a return on equity of 37.19%. The business’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.14 EPS. Sell-side analysts anticipate that Cintas will post 14.95 EPS for the current fiscal year.

Cintas Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Stockholders of record on Wednesday, May 15th will be given a dividend of $1.35 per share. The ex-dividend date of this dividend is Tuesday, May 14th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 0.79%. Cintas’s dividend payout ratio is currently 37.29%.

Insider Activity

In other news, Director Ronald W. Tysoe sold 2,291 shares of the stock in a transaction that occurred on Tuesday, May 7th. The stock was sold at an average price of $693.95, for a total transaction of $1,589,839.45. Following the completion of the transaction, the director now directly owns 6,655 shares in the company, valued at approximately $4,618,237.25. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, COO Jim Rozakis sold 1,318 shares of the stock in a transaction that occurred on Tuesday, May 7th. The stock was sold at an average price of $693.71, for a total transaction of $914,309.78. Following the completion of the transaction, the chief operating officer now directly owns 59,770 shares in the company, valued at approximately $41,463,046.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ronald W. Tysoe sold 2,291 shares of the stock in a transaction that occurred on Tuesday, May 7th. The shares were sold at an average price of $693.95, for a total value of $1,589,839.45. Following the transaction, the director now owns 6,655 shares of the company’s stock, valued at $4,618,237.25. The disclosure for this sale can be found here. Corporate insiders own 15.10% of the company’s stock.

Institutional Trading of Cintas

A number of institutional investors have recently bought and sold shares of CTAS. Norges Bank bought a new stake in shares of Cintas during the fourth quarter worth $872,895,000. Clearbridge Investments LLC grew its stake in Cintas by 475.7% in the fourth quarter. Clearbridge Investments LLC now owns 299,378 shares of the business services provider’s stock valued at $180,423,000 after purchasing an additional 247,378 shares during the last quarter. Invesco Ltd. grew its stake in shares of Cintas by 17.4% during the third quarter. Invesco Ltd. now owns 1,025,615 shares of the business services provider’s stock worth $493,331,000 after acquiring an additional 151,783 shares during the last quarter. American Century Companies Inc. grew its stake in shares of Cintas by 40.7% during the third quarter. American Century Companies Inc. now owns 488,574 shares of the business services provider’s stock worth $235,009,000 after acquiring an additional 141,375 shares during the last quarter. Finally, Public Employees Retirement Association of Colorado grew its stake in shares of Cintas by 711.1% during the fourth quarter. Public Employees Retirement Association of Colorado now owns 152,516 shares of the business services provider’s stock worth $91,915,000 after acquiring an additional 133,713 shares during the last quarter. 63.46% of the stock is currently owned by institutional investors.

Cintas Company Profile

Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. 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, as well as sells uniforms.