Redburn Atlantic Initiates Coverage on Cintas (NASDAQ:CTAS)

Redburn Atlantic assumed coverage on shares of Cintas (NASDAQ:CTAS) in a report issued on Friday morning, Marketbeat reports. The firm issued a neutral rating and a $670.00 price objective on the business services provider’s stock.

A number of other equities analysts have also issued reports on CTAS. Truist Financial raised their price target on shares of Cintas from $775.00 to $850.00 and gave the stock a buy rating in a research report on Friday, July 19th. Morgan Stanley raised their target price on shares of Cintas from $575.00 to $625.00 and gave the stock an equal weight rating in a report on Friday, July 19th. Barclays boosted their target price on shares of Cintas from $700.00 to $850.00 and gave the company an overweight rating in a research report on Friday, July 19th. StockNews.com raised Cintas from a hold rating to a buy rating in a research report on Friday, June 14th. Finally, Baird R W cut Cintas from a strong-buy rating to a hold rating in a report on Friday, July 19th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, Cintas has a consensus rating of Hold and a consensus target price of $742.92.

Cintas Stock Performance

Shares of NASDAQ CTAS traded up $5.22 during midday trading on Friday, reaching $755.65. The company had a trading volume of 206,701 shares, compared to its average volume of 375,069. Cintas has a 1 year low of $474.74 and a 1 year high of $773.95. The business’s 50-day simple moving average is $721.21 and its 200 day simple moving average is $675.26. The company has a current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47. The stock has a market cap of $76.67 billion, a P/E ratio of 52.19, a P/E/G ratio of 4.06 and a beta of 1.31.

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

Cintas (NASDAQ:CTAS) last posted its quarterly earnings results on Thursday, July 18th. The business services provider reported $3.99 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.19. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The business had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.47 billion. During the same quarter in the previous year, the business earned $3.33 EPS. The company’s quarterly revenue was up 8.2% compared to the same quarter last year. On average, analysts forecast that Cintas will post 16.62 earnings per share for the current fiscal year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th will be given a dividend of $1.56 per share. This is a positive change from Cintas’s previous quarterly dividend of $1.35. The ex-dividend date of this dividend is Thursday, August 15th. This represents a $6.24 dividend on an annualized basis and a dividend yield of 0.83%. Cintas’s dividend payout ratio (DPR) is 43.09%.

Cintas announced that its Board of Directors has approved a stock repurchase program on Tuesday, July 23rd that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 1.3% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Gerald S. Adolph sold 1,100 shares of the business’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $765.72, for a total transaction of $842,292.00. Following the completion of the sale, the director now owns 31,452 shares of the company’s stock, valued at $24,083,425.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 15.10% of the stock is currently owned by company insiders.

Institutional Trading of Cintas

Institutional investors have recently made changes to their positions in the company. LGT Financial Advisors LLC raised its stake in Cintas by 311.1% during the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider’s stock worth $26,000 after purchasing an additional 28 shares during the period. Atwood & Palmer Inc. purchased a new position in Cintas in the second quarter worth approximately $27,000. Pathway Financial Advisers LLC acquired a new position in shares of Cintas during the first quarter worth $29,000. Janiczek Wealth Management LLC boosted its position in shares of Cintas by 113.0% during the 4th quarter. Janiczek Wealth Management LLC now owns 49 shares of the business services provider’s stock worth $30,000 after acquiring an additional 26 shares in the last quarter. Finally, Rise Advisors LLC purchased a new position in Cintas in the first quarter valued at approximately $30,000. 63.46% of the stock is owned by institutional investors and hedge funds.

About Cintas

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.