Zacks Investment Research Lowers Cintas Corp. (CTAS) to Sell
Cintas Corp. (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to 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.”
A number of other equities analysts also recently commented on the stock. Nomura reaffirmed 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. Barclays PLC decreased their price objective on shares of Cintas Corp. from $105.00 to $95.00 and set an “equal weight” rating for the company in a report on Wednesday, July 20th. Morgan Stanley reaffirmed an “underweight” rating and issued a $80.00 price objective (up previously from $75.00) on shares of Cintas Corp. in a report on Wednesday, August 17th. Macquarie started coverage on shares of Cintas Corp. in a report on Thursday, August 25th. They set a “neutral” rating and a $130.00 price target for the company. Finally, KeyCorp boosted their price target on shares of Cintas Corp. from $110.00 to $130.00 and gave the company an “overweight” rating in a 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 company’s stock. Cintas Corp. has an average rating of “Hold” and a consensus target price of $112.36.
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Shares of Cintas Corp. (NASDAQ:CTAS) traded up 0.49% during trading on Tuesday, hitting $113.87. 105,306 shares of the stock were exchanged. The stock has a 50-day moving average of $112.72 and a 200 day moving average of $98.34. Cintas Corp. has a 12-month low of $80.00 and a 12-month high of $119.94. The stock has a market cap of $11.87 billion, a P/E ratio of 18.24 and a beta of 0.85.
Cintas Corp. (NASDAQ:CTAS) last released its quarterly earnings data on Tuesday, July 19th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates 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 company posted $0.86 earnings per share. Equities analysts predict 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 dated Monday, July 25th. The shares were sold at an average price of $108.12, for a total value of $216,240.00. Following the sale, the director now directly owns 11,590 shares in the company, valued at $1,253,110.80. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 19.10% of the stock is currently owned by corporate insiders.
A number of large investors have recently modified their holdings of the company. Norges Bank acquired a new stake in shares of Cintas Corp. during the fourth quarter valued at approximately $94,087,000. BlackRock Fund Advisors boosted its stake 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 valued at $225,537,000 after buying an additional 924,422 shares during the period. BlackRock Institutional Trust Company N.A. boosted its stake 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 valued at $262,821,000 after buying an additional 480,916 shares during the period. Wellington Management Group LLP acquired a new stake in shares of Cintas Corp. during the first quarter valued at approximately $35,390,000. Finally, Bristol Gate Capital Partners Inc. acquired a new stake in shares of Cintas Corp. during the second quarter valued at approximately $27,736,000. Hedge funds and other 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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