Cintas Corporation (CTAS) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Cintas Corporation (NASDAQ:CTAS) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base. The acquisition of G&K Services is anticipated to be accretive to Cintas’ earnings. The company’s investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach to focus on the relative value of the various sectors within the broader industry. Cintas has also outperformed the industry year to date. However, volatility in raw material prices and third-party supply constraints remain potential headwinds for the company. Moreover, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves instead of outsourcing them to Cintas, which have resulted in some loss of businesses. Significant international operations also expose it to the foreign currency risks.”

Other research analysts have also recently issued research reports about the company. BidaskClub upgraded Cintas Corporation from a sell rating to a hold rating in a research report on Wednesday, August 23rd. Morgan Stanley reaffirmed an underweight rating and set a $117.00 price objective (up previously from $107.00) on shares of Cintas Corporation in a research note on Tuesday, July 25th. Nomura lowered Cintas Corporation from a buy rating to a neutral rating in a research note on Wednesday, June 28th. Stifel Nicolaus increased their price objective on Cintas Corporation from $123.00 to $136.00 and gave the company a hold rating in a research note on Friday, July 21st. Finally, Instinet lowered Cintas Corporation from a buy rating to a neutral rating and decreased their price target for the stock from $142.00 to $130.00 in a research note on Tuesday, June 27th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and five have given a buy rating to the company. The stock has an average rating of Hold and an average target price of $135.70.

Cintas Corporation (NASDAQ:CTAS) last released its quarterly earnings results on Thursday, July 20th. The business services provider reported $0.75 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.05 by ($0.30). Cintas Corporation had a return on equity of 23.38% and a net margin of 8.90%. The company had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.53 billion. During the same quarter last year, the company earned $1.08 EPS. Cintas Corporation’s revenue for the quarter was up 23.1% compared to the same quarter last year.

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In other news, CFO J. Michael Hansen sold 800 shares of Cintas Corporation stock in a transaction that occurred on Friday, August 11th. The stock was sold at an average price of $130.75, for a total value of $104,600.00. Following the completion of the transaction, the chief financial officer now owns 54,370 shares in the company, valued at approximately $7,108,877.50. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Gerald S. Adolph sold 2,000 shares of Cintas Corporation stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $133.69, for a total value of $267,380.00. Following the completion of the transaction, the director now owns 13,135 shares of the company’s stock, valued at approximately $1,756,018.15. The disclosure for this sale can be found here. 18.90% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. First Personal Financial Services grew its position in shares of Cintas Corporation by 0.8% in the 2nd quarter. First Personal Financial Services now owns 1,147 shares of the business services provider’s stock worth $145,000 after acquiring an additional 9 shares in the last quarter. Rehmann Capital Advisory Group grew its position in shares of Cintas Corporation by 0.6% in the 2nd quarter. Rehmann Capital Advisory Group now owns 1,674 shares of the business services provider’s stock worth $211,000 after acquiring an additional 10 shares in the last quarter. QS Investors LLC grew its position in shares of Cintas Corporation by 1.0% in the 2nd quarter. QS Investors LLC now owns 995 shares of the business services provider’s stock worth $125,000 after acquiring an additional 10 shares in the last quarter. Alps Advisors Inc. grew its position in shares of Cintas Corporation by 0.3% in the 2nd quarter. Alps Advisors Inc. now owns 4,043 shares of the business services provider’s stock worth $510,000 after acquiring an additional 11 shares in the last quarter. Finally, D.A. Davidson & CO. grew its position in shares of Cintas Corporation by 0.8% in the 2nd quarter. D.A. Davidson & CO. now owns 1,574 shares of the business services provider’s stock worth $198,000 after acquiring an additional 12 shares in the last quarter. Institutional investors own 64.76% of the company’s stock.

About Cintas Corporation

Cintas Corporation is a provider of corporate identity uniforms through rental and sales programs, as well as a provider of related business services, including entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, first aid and safety services and fire protection products and services.

Analyst Recommendations for Cintas Corporation (NASDAQ:CTAS)

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