Cintas Corp. (NASDAQ:CTAS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The brokerage currently has a $129.00 target price on the stock. Zacks Investment Research’s target price suggests a potential upside of 10.74% from the company’s previous close.
According to Zacks, “Cintas started fiscal 2017 on a positive note on the back of healthy top-line growth. The company has a positive earnings history, beating estimates in each of the trailing four quarters. Cintas’ investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach to fuel growth. The acquisition of rival G&K Services is likely to fuel its growth momentum with an extended product portfolio and additional processing capacity. Cintas has also increased its guidance for fiscal 2017. In addition, healthy organic growth over the past few quarters has lent stability to the revenues and has enabled the company to comfortably beat earnings estimates in each of the trailing four quarters for a positive earnings surprise. However, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves, resulting in a loss of businesses.”
A number of other research firms have also weighed in on CTAS. Morgan Stanley restated an “underweight” rating and set a $80.00 target price (up previously from $75.00) on shares of Cintas Corp. in a report on Wednesday, August 17th. KeyCorp increased their price objective on Cintas Corp. from $110.00 to $130.00 and gave the company an “overweight” rating in a report on Wednesday, August 17th. Nomura reiterated a “buy” rating and set a $135.00 price objective (up previously from $124.00) on shares of Cintas Corp. in a report on Thursday, August 25th. Barclays PLC reiterated an “overweight” rating and set a $130.00 price objective on shares of Cintas Corp. in a report on Friday, September 30th. Finally, Macquarie assumed coverage on Cintas Corp. in a report on Thursday, August 25th. They set a “neutral” rating and a $130.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $117.50.
Cintas Corp. (NASDAQ:CTAS) opened at 116.49 on Thursday. The company’s 50-day moving average price is $108.33 and its 200 day moving average price is $105.15. Cintas Corp. has a 52-week low of $80.00 and a 52-week high of $119.94. The stock has a market capitalization of $12.22 billion, a P/E ratio of 17.51 and a beta of 0.86.
Cintas Corp. (NASDAQ:CTAS) last posted its earnings results on Tuesday, September 27th. The company reported $1.26 earnings per share for the quarter, topping analysts’ consensus estimates of $1.08 by $0.18. The company earned $1.29 billion during the quarter. Cintas Corp. had a return on equity of 24.60% and a net margin of 14.63%. The firm’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.93 EPS. On average, equities research analysts predict that Cintas Corp. will post $4.60 earnings per share for the current fiscal year.
The business also recently declared an annual dividend, which will be paid on Friday, December 2nd. Shareholders of record on Friday, November 4th will be given a dividend of $1.33 per share. This is an increase from Cintas Corp.’s previous annual dividend of $1.05. This represents a yield of 1.23%. The ex-dividend date of this dividend is Wednesday, November 2nd. Cintas Corp.’s dividend payout ratio (DPR) is currently 20.24%.
Large investors have recently made changes to their positions in the company. Trust Co. of Vermont bought a new stake in shares of Cintas Corp. during the third quarter valued at $118,000. Parasol Investment Management LLC increased its stake in shares of Cintas Corp. by 19.2% in the third quarter. Parasol Investment Management LLC now owns 1,054 shares of the company’s stock valued at $119,000 after buying an additional 170 shares in the last quarter. First Personal Financial Services increased its stake in shares of Cintas Corp. by 38.1% in the second quarter. First Personal Financial Services now owns 1,105 shares of the company’s stock valued at $108,000 after buying an additional 305 shares in the last quarter. Mizuho Asset Management Co. Ltd. increased its stake in shares of Cintas Corp. by 50.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,128 shares of the company’s stock valued at $111,000 after buying an additional 377 shares in the last quarter. Finally, Quadrant Capital Group LLC increased its stake in shares of Cintas Corp. by 0.8% in the second quarter. Quadrant Capital Group LLC now owns 1,129 shares of the company’s stock valued at $106,000 after buying an additional 9 shares in the last quarter. 65.23% of the stock is currently owned by institutional investors.
Cintas Corp. Company Profile
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.