Royal Bank of Canada Increases Cintas (NASDAQ:CTAS) Price Target to $215.00

Cintas (NASDAQ:CTAS) had its target price lifted by research analysts at Royal Bank of Canada from $181.00 to $215.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has a “sector perform” rating on the business services provider’s stock. Royal Bank of Canada’s target price points to a potential upside of 6.25% from the stock’s previous close.

Several other research analysts have also weighed in on CTAS. UBS Group increased their price objective on Cintas from $197.50 to $218.50 and gave the stock a “buy” rating in a research report on Friday, July 19th. Morgan Stanley upped their price target on Cintas from $143.75 to $156.25 and gave the company an “equal weight” rating in a research note on Friday, July 19th. Barclays cut their price objective on Cintas from $850.00 to $210.00 and set an “overweight” rating for the company in a research report on Friday, September 13th. Baird R W cut shares of Cintas from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 19th. Finally, Stifel Nicolaus increased their target price on shares of Cintas from $166.75 to $199.50 and gave the stock a “hold” rating in a research note on Friday, July 19th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $199.63.

Cintas Stock Down 2.3 %

NASDAQ CTAS opened at $202.35 on Thursday. The business’s fifty day simple moving average is $208.63 and its 200-day simple moving average is $183.66. The company has a quick ratio of 1.52, a current ratio of 1.74 and a debt-to-equity ratio of 0.47. The firm has a market cap of $20.53 billion, a PE ratio of 13.97, a P/E/G ratio of 4.09 and a beta of 1.32. Cintas has a 52 week low of $119.69 and a 52 week high of $211.57.

Cintas (NASDAQ:CTAS) last issued its earnings results on Wednesday, September 25th. The business services provider reported $1.10 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.10. Cintas had a net margin of 16.38% and a return on equity of 37.82%. The company had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.49 billion. During the same period in the previous year, the firm earned $3.70 earnings per share. Cintas’s quarterly revenue was up 6.8% compared to the same quarter last year. As a group, equities analysts anticipate that Cintas will post 4.16 earnings per share for the current year.

Cintas announced that its board has authorized a share repurchase program on Tuesday, July 23rd that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 1.3% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s management believes its shares are undervalued.

Insider Activity

In related news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $191.43, for a total transaction of $842,292.00. Following the completion of the transaction, the director now directly owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 15.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in CTAS. Healthcare of Ontario Pension Plan Trust Fund raised its holdings in shares of Cintas by 12.8% in the 2nd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 82,314 shares of the business services provider’s stock valued at $57,641,000 after purchasing an additional 9,314 shares in the last quarter. Newbridge Financial Services Group Inc. increased its holdings in Cintas by 56.8% in the second quarter. Newbridge Financial Services Group Inc. now owns 1,041 shares of the business services provider’s stock valued at $729,000 after buying an additional 377 shares during the last quarter. Heritage Wealth Management Inc. acquired a new stake in Cintas in the second quarter valued at $2,008,000. Sanctuary Advisors LLC purchased a new stake in Cintas during the 2nd quarter worth about $8,454,000. Finally, Brown Financial Advisors acquired a new position in shares of Cintas during the 2nd quarter worth about $189,000. Hedge funds and other institutional investors own 63.46% of the company’s stock.

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.