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

Cintas Co. (NASDAQ:CTAS) shares gapped up prior to trading 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 trading hands.

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

Cintas Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Shareholders of record on Friday, February 14th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 0.76%. The ex-dividend date was Friday, February 14th. Cintas’s dividend payout ratio (DPR) is presently 37.59%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on CTAS. The Goldman Sachs Group lowered their target price on Cintas from $236.00 to $211.00 and set a “buy” rating for the company in a research note on Friday, December 20th. Morgan Stanley lifted their price objective on shares of Cintas from $185.00 to $202.00 and gave the company an “equal weight” rating in a research note on Thursday, December 12th. Citigroup began coverage on shares of Cintas in a research note on Monday, February 24th. They issued a “sell” rating and a $161.00 target price for the company. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $215.00 price target on shares of Cintas in a report on Friday, December 20th. Finally, Wells Fargo & Company cut their price objective on shares of Cintas from $191.00 to $184.00 and set an “underweight” rating on the stock in a report on Friday, December 20th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Cintas has a consensus rating of “Hold” and a consensus target price of $199.79.

Hedge Funds Weigh In On Cintas

Hedge funds have recently added to or reduced their stakes in the business. DSG Capital Advisors LLC bought a new position in shares of Cintas in the 4th quarter worth about $958,000. 111 Capital bought a new position in Cintas in the fourth quarter worth about $4,653,000. Smith Shellnut Wilson LLC ADV boosted its stake in Cintas by 8.2% in the fourth quarter. Smith Shellnut Wilson LLC ADV now owns 5,768 shares of the business services provider’s stock valued at $1,054,000 after acquiring an additional 436 shares during the period. Park Square Financial Group LLC acquired a new position in Cintas in the fourth quarter valued at approximately $69,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new position in shares of Cintas during the fourth quarter valued at approximately $66,909,000. Institutional investors and hedge funds own 63.46% of the company’s stock.

Cintas Price Performance

The firm has a market capitalization of $82.61 billion, a price-to-earnings ratio of 49.36, a PEG ratio of 3.98 and a beta of 1.41. 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 price of $200.75 and a two-hundred day moving average price of $208.89.

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.