Short Interest in Cintas Co. (NASDAQ:CTAS) Drops By 5.3%

Cintas Co. (NASDAQ:CTAS) saw a large decline in short interest in August. As of August 31st, there was short interest totalling 1,430,000 shares, a decline of 5.3% from the August 15th total of 1,510,000 shares. Approximately 1.7% of the shares of the stock are sold short. Based on an average daily volume of 404,100 shares, the short-interest ratio is currently 3.5 days.

Analyst Upgrades and Downgrades

CTAS has been the subject of a number of analyst reports. Wells Fargo & Company raised Cintas to a “strong sell” rating in a report on Tuesday, August 13th. StockNews.com upgraded shares of Cintas from a “hold” rating to a “buy” rating in a report on Friday, June 14th. Barclays lowered their price target on shares of Cintas from $850.00 to $210.00 and set an “overweight” rating for the company in a report on Friday, September 13th. Robert W. Baird reissued a “neutral” rating and set a $193.75 price objective (up previously from $187.50) on shares of Cintas in a research note on Friday, July 19th. Finally, Truist Financial lifted their target price on shares of Cintas from $212.50 to $225.00 and gave the stock a “buy” rating in a research note on Tuesday. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $186.30.

Insiders Place Their Bets

In other news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction that occurred on Wednesday, July 24th. The stock was sold at an average price of $191.43, for a total transaction of $842,292.00. Following the sale, the director now owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 15.10% of the company’s stock.

Institutional Trading of Cintas

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its holdings in shares of Cintas by 1.1% during the 4th quarter. Vanguard Group Inc. now owns 10,299,288 shares of the business services provider’s stock valued at $6,206,969,000 after buying an additional 112,361 shares during the period. Bank of New York Mellon Corp grew its position in Cintas by 3.5% in the first quarter. Bank of New York Mellon Corp now owns 806,369 shares of the business services provider’s stock valued at $554,000,000 after acquiring an additional 27,470 shares in the last quarter. Legal & General Group Plc raised its stake in shares of Cintas by 0.4% during the second quarter. Legal & General Group Plc now owns 780,265 shares of the business services provider’s stock valued at $546,388,000 after purchasing an additional 3,471 shares during the period. Nordea Investment Management AB lifted its position in shares of Cintas by 6.3% during the first quarter. Nordea Investment Management AB now owns 638,038 shares of the business services provider’s stock worth $438,402,000 after purchasing an additional 37,727 shares in the last quarter. Finally, Acadian Asset Management LLC grew its holdings in Cintas by 21.1% during the 2nd quarter. Acadian Asset Management LLC now owns 387,510 shares of the business services provider’s stock valued at $271,323,000 after purchasing an additional 67,440 shares in the last quarter. 63.46% of the stock is currently owned by institutional investors and hedge funds.

Cintas Trading Up 1.4 %

NASDAQ:CTAS traded up $2.85 on Thursday, hitting $204.23. 23,767 shares of the stock were exchanged, compared to its average volume of 1,466,288. The stock has a fifty day moving average of $205.79 and a 200-day moving average of $181.82. The stock has a market cap of $20.72 billion, a PE ratio of 13.91, a PEG ratio of 4.36 and a beta of 1.32. The company has a current ratio of 1.74, a quick ratio of 1.52 and a debt-to-equity ratio of 0.47. Cintas has a fifty-two week low of $118.68 and a fifty-two week high of $209.12.

Cintas (NASDAQ:CTAS) last posted its earnings results on Thursday, July 18th. The business services provider reported $1.00 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.95 by $0.05. The firm had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.47 billion. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The company’s revenue was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.83 EPS. As a group, equities analysts expect that Cintas will post 16.64 earnings per share for the current fiscal year.

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

Cintas Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 0.76%. The ex-dividend date was Thursday, August 15th. Cintas’s dividend payout ratio is presently 10.77%.

About Cintas

Cintas Corporation engages in the provision of 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.