King Luther Capital Management Corp Reduces Stock Position in Cintas Co. (NASDAQ:CTAS)

King Luther Capital Management Corp lessened its stake in Cintas Co. (NASDAQ:CTAS) by 0.6% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 484,321 shares of the business services provider’s stock after selling 3,068 shares during the quarter. Cintas comprises about 1.5% of King Luther Capital Management Corp’s holdings, making the stock its 14th largest holding. King Luther Capital Management Corp owned 0.48% of Cintas worth $339,151,000 as of its most recent filing with the SEC.

Several other large investors also recently added to or reduced their stakes in CTAS. LGT Financial Advisors LLC increased its stake in Cintas by 311.1% during the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider’s stock worth $26,000 after acquiring an additional 28 shares during the last quarter. Atwood & Palmer Inc. acquired a new stake in shares of Cintas during the 2nd quarter worth about $27,000. Pathway Financial Advisers LLC purchased a new stake in Cintas in the 1st quarter valued at about $29,000. Rise Advisors LLC acquired a new stake in shares of Cintas during the first quarter valued at about $30,000. Finally, Meeder Asset Management Inc. increased its position in shares of Cintas by 226.7% during the second quarter. Meeder Asset Management Inc. now owns 49 shares of the business services provider’s stock valued at $34,000 after acquiring an additional 34 shares during the last quarter. 63.46% of the stock is currently owned by hedge funds and other institutional investors.

Cintas Stock Up 1.2 %

Shares of NASDAQ CTAS opened at $203.74 on Friday. The stock has a market cap of $20.67 billion, a PE ratio of 14.07, a price-to-earnings-growth ratio of 4.36 and a beta of 1.32. Cintas Co. has a 52-week low of $118.68 and a 52-week high of $209.12. The business has a 50-day moving average price of $206.29 and a 200 day moving average price of $181.97. The company has a quick ratio of 1.52, a current ratio of 1.74 and a debt-to-equity ratio of 0.47.

Cintas (NASDAQ:CTAS) last announced 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. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The business had revenue of $2.47 billion for the quarter, compared to analysts’ expectations of $2.47 billion. During the same period in the previous year, the company posted $0.83 EPS. The company’s quarterly revenue was up 8.2% on a year-over-year basis. Equities research analysts forecast that Cintas Co. will post 16.64 earnings per share for the current year.

Cintas announced that its board has approved a share repurchase plan on Tuesday, July 23rd that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the business services provider to buy up to 1.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Cintas Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 3rd. Shareholders 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 0.77%. Cintas’s dividend payout ratio (DPR) is currently 10.77%.

Insider Activity

In related news, Director Gerald S. Adolph sold 4,400 shares of Cintas stock in a transaction on Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total value of $842,292.00. Following the transaction, the director now directly owns 125,808 shares in the company, valued at approximately $24,083,425.44. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 15.10% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. UBS Group boosted their target price on Cintas from $197.50 to $218.50 and gave the company a “buy” rating in a research report on Friday, July 19th. Wells Fargo & Company raised Cintas to a “strong sell” rating in a research report on Tuesday, August 13th. Citigroup cut shares of Cintas from a “neutral” rating to a “sell” rating and increased their price target for the stock from $132.50 to $142.50 in a research report on Friday, May 24th. Robert W. Baird reaffirmed a “neutral” rating and set a $193.75 target price (up from $187.50) on shares of Cintas in a research note on Friday, July 19th. Finally, Royal Bank of Canada downgraded shares of Cintas from an “outperform” rating to a “sector perform” rating and set a $181.25 price target for the company. in a research note on Monday, July 15th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat.com, Cintas presently has an average rating of “Hold” and an average target price of $186.30.

Cintas 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.