Zacks Investment Research Lowers Cintas Corporation (CTAS) to Hold
Cintas Corporation (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.
According to Zacks, “Cintas’ shares have almost performed in line with the industry in the last three months. The acquisition of rival G&K Services is likely to fuel its growth momentum with an extended product portfolio and additional processing capacity. Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base to include fresh business segments. Cintas has also increased its guidance for fiscal 2017 on favorable growth dynamics. However, Cintas has missed second-quarter fiscal 2017 earnings by $0.01. Persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves, resulting in some loss of business for Cintas. A sustained increase in raw material costs may also weigh on the margins. The company’s significant international operations further expose it to the risk of fluctuation in foreign exchange rates.”
Other research analysts have also issued research reports about the company. RBC Capital Markets restated a “sector perform” rating on shares of Cintas Corporation in a research report on Tuesday, December 27th. Stifel Nicolaus lifted their target price on Cintas Corporation from $118.00 to $123.00 and gave the company a “hold” rating in a research note on Tuesday, December 20th. Oppenheimer Holdings, Inc. reaffirmed a “market perform” rating on shares of Cintas Corporation in a research note on Wednesday, September 28th. Robert W. Baird reaffirmed an “outperform” rating and set a $140.00 target price on shares of Cintas Corporation in a research note on Friday, September 30th. Finally, Morgan Stanley set a $87.00 target price on Cintas Corporation and gave the company a “sell” rating in a research note on Wednesday, September 28th. One analyst has rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $118.18.
Cintas Corporation (NASDAQ:CTAS) traded down 0.07% during mid-day trading on Friday, reaching $114.32. The company’s stock had a trading volume of 89,007 shares. The company has a market capitalization of $12.01 billion, a PE ratio of 23.83 and a beta of 0.89. The firm has a 50 day moving average price of $117.42 and a 200-day moving average price of $110.14. Cintas Corporation has a 1-year low of $80.00 and a 1-year high of $122.21.
Cintas Corporation (NASDAQ:CTAS) last released its quarterly earnings data on Thursday, December 22nd. The company reported $1.13 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.15 by $0.02. Cintas Corporation had a net margin of 10.37% and a return on equity of 24.80%. The company had revenue of $1.30 billion for the quarter. During the same period in the prior year, the company earned $1.03 EPS. Cintas Corporation’s revenue for the quarter was up 6.4% on a year-over-year basis. On average, equities analysts predict that Cintas Corporation will post $4.61 EPS for the current fiscal year.
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Several institutional investors have recently modified their holdings of CTAS. BlackRock Fund Advisors boosted its position in shares of Cintas Corporation by 67.3% in the second quarter. BlackRock Fund Advisors now owns 2,298,352 shares of the company’s stock worth $225,537,000 after buying an additional 924,422 shares during the last quarter. Bristol Gate Capital Partners Inc. bought a new position in shares of Cintas Corporation during the second quarter worth about $27,736,000. Hsbc Holdings PLC boosted its position in shares of Cintas Corporation by 230.1% in the second quarter. Hsbc Holdings PLC now owns 328,648 shares of the company’s stock worth $31,799,000 after buying an additional 229,078 shares during the last quarter. Royal Bank of Canada boosted its position in shares of Cintas Corporation by 108.2% in the second quarter. Royal Bank of Canada now owns 353,658 shares of the company’s stock worth $34,705,000 after buying an additional 183,781 shares during the last quarter. Finally, Morgan Stanley boosted its position in shares of Cintas Corporation by 86.2% in the third quarter. Morgan Stanley now owns 384,896 shares of the company’s stock worth $43,339,000 after buying an additional 178,203 shares during the last quarter. Institutional investors and hedge funds own 65.06% 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.
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