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

Cintas Co. (NASDAQ:CTAS)’s share 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 trading hands.

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

Cintas Announces Dividend

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

Analyst Ratings Changes

Several research analysts have recently issued reports on CTAS shares. UBS Group decreased their price target on Cintas from $240.00 to $218.00 and set a “buy” rating for the company in a research note on Friday, December 20th. Morgan Stanley increased their target price on shares of Cintas from $185.00 to $202.00 and gave the company an “equal weight” rating in a research report on Thursday, December 12th. Wells Fargo & Company dropped their price target on shares of Cintas from $191.00 to $184.00 and set an “underweight” rating on the stock in a research report on Friday, December 20th. Citigroup started coverage on shares of Cintas in a research note on Monday, February 24th. They issued a “sell” rating and a $161.00 price target for the company. Finally, The Goldman Sachs Group lowered their price objective on shares of Cintas from $236.00 to $211.00 and set a “buy” rating on the stock in a research note on Friday, December 20th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and six have issued a buy rating to the company. According to MarketBeat.com, Cintas has an average rating of “Hold” and a consensus target price of $199.79.

Institutional Investors Weigh In On Cintas

Several large investors have recently modified their holdings of CTAS. State Street Corp lifted its holdings in shares of Cintas by 299.3% during the third quarter. State Street Corp now owns 14,555,558 shares of the business services provider’s stock valued at $2,996,697,000 after purchasing an additional 10,910,285 shares during the last quarter. FMR LLC lifted its stake in Cintas by 297.3% during the third quarter. FMR LLC now owns 8,781,132 shares of the business services provider’s stock valued at $1,807,860,000 after buying an additional 6,571,128 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Cintas by 2.7% in the fourth 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 during the period. Invesco Ltd. boosted its holdings in shares of Cintas by 6.1% in the fourth quarter. Invesco Ltd. now owns 5,118,479 shares of the business services provider’s stock worth $935,146,000 after buying an additional 296,059 shares during the period. Finally, Norges Bank purchased a new position in shares of Cintas in the fourth quarter worth approximately $877,216,000. 63.46% of the stock is owned by institutional investors.

Cintas Price Performance

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.58 and a quick ratio of 1.38. The firm has a market cap of $82.61 billion, a price-to-earnings ratio of 49.36, a price-to-earnings-growth ratio of 3.98 and a beta of 1.41. The stock’s fifty day moving average price is $200.75 and its 200-day moving average price is $208.89.

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.