Cintas Corporation (CTAS) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Cintas Corporation (NASDAQ:CTAS) from a buy rating to a hold rating in a research report sent to investors on Wednesday.

According to Zacks, “Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base. The acquisition of G&K Services is anticipated to be accretive to Cintas’ earnings. The company’s 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. Cintas has also outperformed the industry year to date. However, volatility in raw material prices and third-party supply constraints remain potential headwinds for the company. Moreover, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves instead of outsourcing them to Cintas, which have resulted in some loss of businesses. Significant international operations also expose it to the foreign currency risks.”

Several other research firms also recently issued reports on CTAS. Deutsche Bank AG set a $130.00 price objective on Cintas Corporation and gave the stock a hold rating in a report on Friday, July 21st. Royal Bank Of Canada reaffirmed a hold rating and set a $130.00 price objective on shares of Cintas Corporation in a report on Friday, July 21st. Morgan Stanley reaffirmed an underweight rating and set a $117.00 price objective (up previously from $107.00) on shares of Cintas Corporation in a report on Tuesday, July 25th. BidaskClub raised Cintas Corporation from a sell rating to a hold rating in a report on Wednesday, August 23rd. Finally, Robert W. Baird set a $152.00 price objective on Cintas Corporation and gave the stock a buy rating in a report on Thursday, August 24th. One analyst has rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average price target of $135.70.

Shares of Cintas Corporation (NASDAQ:CTAS) opened at 136.65 on Wednesday. The firm’s 50-day moving average price is $133.77 and its 200 day moving average price is $127.29. The company has a market cap of $14.41 billion, a P/E ratio of 31.15 and a beta of 0.85. Cintas Corporation has a 52 week low of $102.07 and a 52 week high of $139.74.

Cintas Corporation (NASDAQ:CTAS) last posted its quarterly earnings data on Thursday, July 20th. The business services provider reported $0.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.05 by ($0.30). Cintas Corporation had a return on equity of 23.38% and a net margin of 8.90%. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same period in the prior year, the company posted $1.08 EPS. The firm’s quarterly revenue was up 23.1% compared to the same quarter last year. On average, equities analysts predict that Cintas Corporation will post $5.22 EPS for the current fiscal year.

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In other news, Director Gerald S. Adolph sold 2,000 shares of the stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $133.69, for a total value of $267,380.00. Following the transaction, the director now owns 13,135 shares of the company’s stock, valued at approximately $1,756,018.15. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO J. Michael Hansen sold 800 shares of the stock in a transaction on Friday, August 11th. The shares were sold at an average price of $130.75, for a total value of $104,600.00. Following the completion of the transaction, the chief financial officer now directly owns 54,370 shares in the company, valued at approximately $7,108,877.50. The disclosure for this sale can be found here. Corporate insiders own 18.90% of the company’s stock.

Several hedge funds have recently bought and sold shares of CTAS. BlackRock Inc. lifted its stake in shares of Cintas Corporation by 1,737.2% in the 1st quarter. BlackRock Inc. now owns 6,465,344 shares of the business services provider’s stock valued at $818,121,000 after purchasing an additional 6,113,425 shares during the period. Janus Henderson Group PLC lifted its stake in shares of Cintas Corporation by 10,719.0% in the 2nd quarter. Janus Henderson Group PLC now owns 1,113,279 shares of the business services provider’s stock valued at $140,318,000 after purchasing an additional 1,102,989 shares during the period. MARSHALL WACE ASIA Ltd acquired a new position in shares of Cintas Corporation in the 1st quarter valued at $57,378,000. Marshall Wace North America L.P. acquired a new position in shares of Cintas Corporation in the 1st quarter valued at $57,378,000. Finally, Artisan Partners Limited Partnership lifted its stake in shares of Cintas Corporation by 34.4% in the 1st quarter. Artisan Partners Limited Partnership now owns 1,304,321 shares of the business services provider’s stock valued at $165,049,000 after purchasing an additional 333,957 shares during the period. 64.76% of the stock is currently owned by institutional investors.

About Cintas Corporation

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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