Short Interest in Cintas Co. (NASDAQ:CTAS) Expands By 428.0%

Cintas Co. (NASDAQ:CTAS) was the target of a large increase in short interest in the month of September. As of September 15th, there was short interest totalling 7,550,000 shares, an increase of 428.0% from the August 31st total of 1,430,000 shares. Based on an average daily volume of 1,630,000 shares, the days-to-cover ratio is presently 4.6 days.

Cintas Trading Up 1.6 %

CTAS stock traded up $3.19 on Wednesday, reaching $208.04. The company’s stock had a trading volume of 1,042,688 shares, compared to its average volume of 1,479,731. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74. Cintas has a 12-month low of $118.68 and a 12-month high of $209.59. The firm has a market cap of $83.89 billion, a PE ratio of 14.15, a PEG ratio of 4.09 and a beta of 1.32. The business has a fifty day simple moving average of $207.74 and a two-hundred day simple moving average of $183.33.

Cintas (NASDAQ:CTAS) last released its earnings results on Thursday, July 18th. The business services provider reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.05. The company had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.47 billion. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The firm’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.83 EPS. As a group, research analysts forecast that Cintas will post 4.16 EPS for the current year.

Cintas Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were paid a $0.39 dividend. The ex-dividend date of this dividend was Thursday, August 15th. This represents a $1.56 annualized dividend and a dividend yield of 0.75%. Cintas’s payout ratio is 10.77%.

Cintas announced that its board has approved a stock repurchase program on Tuesday, July 23rd that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the business services provider to buy up to 1.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Redburn Atlantic initiated coverage on Cintas in a research report on Friday, August 9th. They set a “neutral” rating and a $167.50 price target for the company. Truist Financial raised their price objective on Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a report on Tuesday, September 17th. Barclays decreased their price objective on Cintas from $850.00 to $210.00 and set an “overweight” rating on the stock in a report on Friday, September 13th. Wells Fargo & Company raised Cintas to a “strong sell” rating in a report on Tuesday, August 13th. Finally, StockNews.com raised Cintas from a “hold” rating to a “buy” rating in a report on Friday, June 14th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $186.30.

Insiders Place Their Bets

In other Cintas news, Director Gerald S. Adolph sold 4,400 shares of the firm’s stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $191.43, for a total value of $842,292.00. Following the completion of the transaction, the director now owns 125,808 shares in the company, valued at approximately $24,083,425.44. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 15.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cintas

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in 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 purchasing an additional 112,361 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of Cintas by 3.5% during 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 holdings in Cintas by 0.4% in the 2nd quarter. Legal & General Group Plc now owns 780,265 shares of the business services provider’s stock worth $546,388,000 after acquiring an additional 3,471 shares during the last quarter. Nordea Investment Management AB lifted its position in Cintas by 6.3% in the 1st quarter. Nordea Investment Management AB now owns 638,038 shares of the business services provider’s stock valued at $438,402,000 after acquiring an additional 37,727 shares in the last quarter. Finally, Acadian Asset Management LLC boosted its stake 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 during the last quarter. Hedge funds and other institutional investors own 63.46% of the company’s stock.

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.