Cintas Corp. (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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.”

Several other equities research analysts also recently issued reports on the stock. Nomura reiterated a “buy” rating on shares of Cintas Corp. in a research note on Sunday, July 17th. Barclays PLC cut their target price on shares of Cintas Corp. from $105.00 to $95.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 20th. KeyCorp raised their target price on shares of Cintas Corp. from $110.00 to $130.00 and gave the company an “overweight” rating in a research note on Wednesday, August 17th. Morgan Stanley reiterated an “underweight” rating and issued a $80.00 target price (up from $75.00) on shares of Cintas Corp. in a research note on Wednesday, August 17th. Finally, Piper Jaffray Cos. reiterated a “neutral” rating and issued a $106.00 target price (up from $95.00) on shares of Cintas Corp. in a research note on Wednesday, July 20th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $112.36.

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Cintas Corp. (NASDAQ:CTAS) traded up 0.41% during midday trading on Tuesday, hitting $113.78. The stock had a trading volume of 329,386 shares. The company has a market cap of $11.86 billion, a price-to-earnings ratio of 18.23 and a beta of 0.85. The company’s 50 day moving average is $112.72 and its 200 day moving average is $98.34. Cintas Corp. has a 1-year low of $80.00 and a 1-year high of $119.94.

Cintas Corp. (NASDAQ:CTAS) last announced its quarterly earnings data on Tuesday, July 19th. The company reported $1.08 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.00 by $0.08. The company earned $1.27 billion during the quarter, compared to analysts’ expectations of $1.25 billion. Cintas Corp. had a return on equity of 24.16% and a net margin of 14.14%. During the same quarter last year, the company earned $0.86 EPS. On average, equities analysts anticipate that Cintas Corp. will post $4.42 earnings per share for the current fiscal year.

In other news, Director Gerald S. Adolph sold 2,000 shares of Cintas Corp. stock in a transaction that occurred on Monday, July 25th. The shares were sold at an average price of $108.12, for a total value of $216,240.00. Following the completion of the sale, the director now directly owns 11,590 shares in the company, valued at $1,253,110.80. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 19.10% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. State Street Corp boosted its position in shares of Cintas Corp. by 2.2% in the first quarter. State Street Corp now owns 4,610,270 shares of the company’s stock worth $414,060,000 after buying an additional 99,221 shares during the period. BlackRock Institutional Trust Company N.A. boosted its position in shares of Cintas Corp. by 19.7% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,926,414 shares of the company’s stock worth $262,821,000 after buying an additional 480,916 shares during the period. BlackRock Fund Advisors boosted its position in shares of Cintas Corp. by 67.3% in the second quarter. BlackRock Fund Advisors now owns 2,298,352 shares of the company’s stock worth $225,537,000 after buying an additional 924,422 shares during the period. Franklin Resources Inc. boosted its position in shares of Cintas Corp. by 1.2% in the first quarter. Franklin Resources Inc. now owns 1,796,341 shares of the company’s stock worth $161,330,000 after buying an additional 21,199 shares during the period. Finally, AQR Capital Management LLC boosted its position in shares of Cintas Corp. by 0.6% in the second quarter. AQR Capital Management LLC now owns 1,547,583 shares of the company’s stock worth $151,865,000 after buying an additional 8,476 shares during the period. Institutional investors own 67.56% of the company’s stock.

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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