Share Buyback Plan Authorized by Cintas (NASDAQ:CTAS)

Cintas (NASDAQ:CTAS) announced that its board has initiated a share repurchase plan on Tuesday, October 28th, RTT News reports. The company plans to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 1.3% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Cintas Price Performance

Shares of CTAS opened at $183.98 on Friday. The firm has a market cap of $73.94 billion, a price-to-earnings ratio of 41.72, a PEG ratio of 3.18 and a beta of 1.01. The stock has a 50 day moving average of $199.38 and a 200-day moving average of $211.94. The company has a current ratio of 2.24, a quick ratio of 1.94 and a debt-to-equity ratio of 0.51. Cintas has a 52 week low of $180.78 and a 52 week high of $229.24.

Cintas (NASDAQ:CTAS) last issued its earnings results on Wednesday, September 24th. The business services provider reported $1.20 EPS for the quarter, topping the consensus estimate of $1.19 by $0.01. The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.70 billion. Cintas had a return on equity of 40.41% and a net margin of 17.54%.The business’s revenue was up 8.7% on a year-over-year basis. During the same quarter last year, the firm earned $1.10 EPS. Cintas has set its FY 2026 guidance at 4.740-4.86 EPS. As a group, analysts forecast that Cintas will post 4.31 EPS for the current year.

Cintas Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Friday, November 14th will be given a $0.45 dividend. The ex-dividend date is Friday, November 14th. This represents a $1.80 annualized dividend and a dividend yield of 1.0%. Cintas’s dividend payout ratio (DPR) is presently 40.82%.

Analysts Set New Price Targets

A number of brokerages have weighed in on CTAS. Weiss Ratings restated a “buy (b)” rating on shares of Cintas in a research note on Wednesday, October 8th. JPMorgan Chase & Co. lowered their price objective on Cintas from $246.00 to $230.00 and set an “overweight” rating for the company in a research note on Thursday, September 25th. Morgan Stanley raised their price objective on Cintas from $213.00 to $220.00 and gave the company an “equal weight” rating in a research note on Friday, July 18th. UBS Group raised their price objective on Cintas from $240.00 to $255.00 and gave the company a “buy” rating in a research note on Friday, July 18th. Finally, Wells Fargo & Company lowered their price objective on Cintas from $221.00 to $218.00 and set an “equal weight” rating for the company in a research note on Thursday, September 25th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Cintas has a consensus rating of “Hold” and a consensus price target of $222.09.

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.