Cintas (NASDAQ:CTAS) Shares Gap Up Following Better-Than-Expected Earnings

Cintas Co. (NASDAQ:CTAS)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $193.46, but opened at $204.54. Cintas shares last traded at $211.01, with a volume of 837,499 shares traded.

The business services provider reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.05 by $0.08. Cintas had a return on equity of 40.62% and a net margin of 17.23%. The company had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.60 billion. During the same quarter last year, the firm posted $3.84 EPS. The firm’s revenue for the quarter was up 8.4% on a year-over-year basis.

Cintas Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, March 14th. Shareholders of record on Friday, February 14th were paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 0.76%. The ex-dividend date of this dividend was Friday, February 14th. Cintas’s dividend payout ratio (DPR) is 36.11%.

Analyst Upgrades and Downgrades

CTAS has been the subject of several recent research reports. Citigroup assumed coverage on Cintas in a report on Monday, February 24th. They issued a “sell” rating and a $161.00 price target for the company. UBS Group raised their target price on Cintas from $218.00 to $240.00 and gave the stock a “buy” rating in a research note on Thursday. Truist Financial lifted their price target on Cintas from $215.00 to $230.00 and gave the stock a “buy” rating in a report on Thursday. Robert W. Baird upped their price objective on shares of Cintas from $200.00 to $227.00 and gave the company a “neutral” rating in a report on Thursday. Finally, Royal Bank of Canada reaffirmed a “sector perform” rating and set a $215.00 target price on shares of Cintas in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $207.57.

Hedge Funds Weigh In On Cintas

Institutional investors and hedge funds have recently modified their holdings of the company. MJP Associates Inc. ADV boosted its holdings in Cintas by 2.1% in the fourth quarter. MJP Associates Inc. ADV now owns 2,412 shares of the business services provider’s stock valued at $441,000 after purchasing an additional 50 shares in the last quarter. Guardian Wealth Advisors LLC grew its holdings in shares of Cintas by 3.1% during the fourth quarter. Guardian Wealth Advisors LLC now owns 1,741 shares of the business services provider’s stock worth $318,000 after purchasing an additional 52 shares during the last quarter. MGB Wealth Management LLC grew its holdings in shares of Cintas by 0.7% during the fourth quarter. MGB Wealth Management LLC now owns 7,248 shares of the business services provider’s stock worth $1,328,000 after purchasing an additional 52 shares during the last quarter. TIAA Trust National Association lifted its holdings in shares of Cintas by 1.0% in the 4th quarter. TIAA Trust National Association now owns 5,380 shares of the business services provider’s stock valued at $983,000 after purchasing an additional 52 shares during the last quarter. Finally, Wellspring Financial Advisors LLC boosted its position in shares of Cintas by 4.6% in the 4th quarter. Wellspring Financial Advisors LLC now owns 1,171 shares of the business services provider’s stock valued at $214,000 after purchasing an additional 52 shares during the period. Institutional investors and hedge funds own 63.46% of the company’s stock.

Cintas Stock Up 0.8 %

The company has a current ratio of 1.58, a quick ratio of 1.38 and a debt-to-equity ratio of 0.47. The business has a 50 day moving average of $200.91 and a 200-day moving average of $208.87. The stock has a market cap of $83.23 billion, a PE ratio of 49.73, a P/E/G ratio of 3.98 and a beta of 1.41.

Cintas Company Profile

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.