Cintas (NASDAQ:CTAS) Shares Gap Up on Strong Earnings

Cintas Co. (NASDAQ:CTAS)’s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 changing hands.

The business services provider reported $1.13 earnings per share for the quarter, topping the consensus estimate of $1.05 by $0.08. The business had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.60 billion. Cintas had a net margin of 17.23% and a return on equity of 40.62%. The business’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.84 earnings per share.

Cintas Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, March 14th. Stockholders of record on Friday, February 14th were issued 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 Friday, February 14th. Cintas’s payout ratio is currently 36.11%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. The Goldman Sachs Group lifted their price objective on shares of Cintas from $211.00 to $233.00 and gave the company a “buy” rating in a research report on Thursday. Robert W. Baird raised their target price on shares of Cintas from $200.00 to $227.00 and gave the stock a “neutral” rating in a research note on Thursday. Royal Bank of Canada reiterated a “sector perform” rating and set a $215.00 price target on shares of Cintas in a research note on Thursday. UBS Group increased their price target on shares of Cintas from $218.00 to $240.00 and gave the stock a “buy” rating in a report on Thursday. Finally, Morgan Stanley lifted their price objective on Cintas from $195.00 to $213.00 and gave the company an “equal weight” rating in a report on Thursday. Two analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $207.57.

Institutional Investors Weigh In On Cintas

Institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp boosted its position in Cintas by 299.3% during the third quarter. State Street Corp now owns 14,555,558 shares of the business services provider’s stock worth $2,996,697,000 after purchasing an additional 10,910,285 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Cintas by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 8,468,080 shares of the business services provider’s stock worth $1,544,822,000 after buying an additional 219,809 shares in the last quarter. Invesco Ltd. grew its stake in Cintas by 6.1% in the 4th quarter. Invesco Ltd. now owns 5,118,479 shares of the business services provider’s stock valued at $935,146,000 after acquiring an additional 296,059 shares during the last quarter. Norges Bank purchased a new position in Cintas during the 4th quarter valued at about $877,216,000. Finally, Northern Trust Corp increased its holdings in Cintas by 13.1% during the 4th quarter. Northern Trust Corp now owns 4,067,037 shares of the business services provider’s stock valued at $743,048,000 after acquiring an additional 472,069 shares in the last quarter. Institutional investors and hedge funds own 63.46% of the company’s stock.

Cintas Trading Up 0.8 %

The business’s 50-day simple moving average is $200.91 and its 200-day simple moving average is $208.87. The company has a market cap of $83.23 billion, a price-to-earnings ratio of 49.73, a PEG ratio of 3.98 and a beta of 1.41. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.58 and a quick ratio of 1.38.

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.