Cintas (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, Zacks.com reports.

According to Zacks, “Over the past three months, Cintas' shares have outperformed the industry. Improved product offerings, solid customer base and effective implementation of enterprise resource planning system will benefit the company in the quarters ahead. Further, the company will gain from the G&K Services buyout. For fiscal 2019, Cintas raised earnings estimates from $7.30-$7.38 to $7.42-$7.48 per share. A strong cash position and focus on rewarding shareholders handsomely through dividends and share repurchases will work in its favor. However, we believe, if unchecked, higher costs and operating expenses will prove detrimental to Cintas’ margins and profitability. Also, the company is exposed to market risks as it procures raw materials from a wide variety of domestic and international suppliers. Further, increases in debt levels can increase its financial obligations.”

A number of other research firms have also issued reports on CTAS. BidaskClub upgraded Cintas from a “buy” rating to a “strong-buy” rating in a report on Thursday, April 18th. Morgan Stanley increased their target price on Cintas from $163.00 to $172.00 and gave the company an “underweight” rating in a report on Friday, March 22nd. JPMorgan Chase & Co. increased their target price on Cintas from $210.00 to $235.00 and gave the company an “overweight” rating in a report on Friday, March 22nd. Finally, ValuEngine upgraded Cintas from a “hold” rating to a “buy” rating in a report on Monday, February 4th. One research analyst has rated the stock with a sell rating, five have given a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $194.45.

CTAS traded up $1.83 during trading on Wednesday, reaching $221.90. The stock had a trading volume of 177,895 shares, compared to its average volume of 422,015. The company has a market capitalization of $22.64 billion, a price-to-earnings ratio of 37.36, a price-to-earnings-growth ratio of 2.38 and a beta of 1.08. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.24 and a quick ratio of 1.89. Cintas has a 1-year low of $155.98 and a 1-year high of $223.99.

Cintas (NASDAQ:CTAS) last announced its quarterly earnings data on Thursday, March 21st. The business services provider reported $1.84 EPS for the quarter, beating analysts’ consensus estimates of $1.71 by $0.13. Cintas had a return on equity of 25.85% and a net margin of 12.44%. The company had revenue of $1.68 million during the quarter, compared to the consensus estimate of $1.69 billion. During the same quarter in the prior year, the firm earned $1.37 EPS. The company’s quarterly revenue was down 99.9% compared to the same quarter last year. Equities analysts expect that Cintas will post 7.46 EPS for the current fiscal year.

In other Cintas news, VP Thomas E. Frooman sold 2,415 shares of the stock in a transaction on Wednesday, April 3rd. The shares were sold at an average price of $207.81, for a total transaction of $501,861.15. Following the transaction, the vice president now directly owns 122,251 shares of the company’s stock, valued at $25,404,980.31. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Joseph Scaminace sold 6,255 shares of the stock in a transaction on Friday, May 3rd. The stock was sold at an average price of $222.20, for a total transaction of $1,389,861.00. Following the transaction, the director now directly owns 7,973 shares in the company, valued at $1,771,600.60. The disclosure for this sale can be found here. Insiders sold 10,410 shares of company stock worth $2,242,837 over the last ninety days. 19.10% of the stock is currently owned by company insiders.

A number of institutional investors have recently bought and sold shares of the business. Teachers Advisors LLC boosted its position in shares of Cintas by 8.0% during the third quarter. Teachers Advisors LLC now owns 127,318 shares of the business services provider’s stock worth $25,185,000 after purchasing an additional 9,402 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of Cintas by 8.9% during the 3rd quarter. Legal & General Group Plc now owns 443,197 shares of the business services provider’s stock worth $87,669,000 after acquiring an additional 36,363 shares during the period. Vanguard Group Inc lifted its holdings in shares of Cintas by 0.5% during the 3rd quarter. Vanguard Group Inc now owns 9,605,402 shares of the business services provider’s stock worth $1,900,044,000 after acquiring an additional 48,586 shares during the period. DNB Asset Management AS lifted its holdings in shares of Cintas by 4.7% during the 4th quarter. DNB Asset Management AS now owns 13,141 shares of the business services provider’s stock worth $2,208,000 after acquiring an additional 593 shares during the period. Finally, First Citizens Bank & Trust Co. lifted its holdings in shares of Cintas by 26.5% during the 4th quarter. First Citizens Bank & Trust Co. now owns 11,478 shares of the business services provider’s stock worth $1,928,000 after acquiring an additional 2,406 shares during the period. 67.15% of the stock is currently owned by hedge funds and other institutional investors.

Cintas Company Profile

Cintas Corporation provides corporate identity uniforms and related business services primarily in North America, Latin America, Europe, and Asia. It operates through Uniform Rental and Facility Services and First Aid and Safety Services 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, and carpet and tile cleaning services, as well as sells uniforms directly.

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