Cintas Corporation (CTAS) Stock Rating Lowered by Zacks Investment Research
Cintas Corporation (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
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.”
Several other research analysts also recently issued reports on CTAS. Instinet downgraded shares of Cintas Corporation from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $142.00 to $130.00 in a research report on Tuesday, June 27th. Nomura downgraded shares of Cintas Corporation from a “buy” rating to a “neutral” rating in a research report on Wednesday, June 28th. Deutsche Bank AG set a $130.00 price objective on shares of Cintas Corporation and gave the stock a “hold” rating in a research report on Friday, July 21st. Royal Bank Of Canada reissued a “hold” rating and set a $130.00 price objective on shares of Cintas Corporation in a research report on Friday, July 21st. Finally, Morgan Stanley reissued an “underweight” rating and set a $117.00 price objective (up from $107.00) on shares of Cintas Corporation in a research report on Tuesday, July 25th. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating and five have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus target price of $135.70.
Cintas Corporation (NASDAQ:CTAS) opened at 137.45 on Wednesday. Cintas Corporation has a 52-week low of $102.07 and a 52-week high of $139.74. The company’s 50-day moving average is $133.77 and its 200-day moving average is $127.29. The firm has a market capitalization of $14.49 billion, a P/E ratio of 31.33 and a beta of 0.85.
Cintas Corporation (NASDAQ:CTAS) last posted its earnings results on Thursday, July 20th. The business services provider reported $0.75 EPS for the quarter, missing the Zacks’ consensus estimate of $1.05 by ($0.30). The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.53 billion. Cintas Corporation had a net margin of 8.90% and a return on equity of 23.38%. The company’s quarterly revenue was up 23.1% on a year-over-year basis. During the same period last year, the business earned $1.08 earnings per share. On average, analysts predict that Cintas Corporation will post $5.23 EPS for the current year.
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In other news, CFO J. Michael Hansen sold 800 shares of Cintas Corporation stock in a transaction dated Friday, August 11th. The shares were sold at an average price of $130.75, for a total value of $104,600.00. Following the sale, the chief financial officer now owns 54,370 shares of the company’s stock, valued at $7,108,877.50. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Gerald S. Adolph sold 2,000 shares of Cintas Corporation stock in a transaction dated Tuesday, August 15th. The shares were sold at an average price of $133.69, for a total transaction of $267,380.00. Following the completion of the sale, the director now directly owns 13,135 shares in the company, valued at approximately $1,756,018.15. The disclosure for this sale can be found here. 18.90% of the stock is owned by insiders.
Several large investors have recently modified their holdings of the company. First Personal Financial Services boosted its holdings in shares of Cintas Corporation by 0.8% in the second quarter. First Personal Financial Services now owns 1,147 shares of the business services provider’s stock valued at $145,000 after acquiring an additional 9 shares in the last quarter. Rehmann Capital Advisory Group boosted its holdings in shares of Cintas Corporation by 0.6% in the second quarter. Rehmann Capital Advisory Group now owns 1,674 shares of the business services provider’s stock valued at $211,000 after acquiring an additional 10 shares in the last quarter. QS Investors LLC boosted its holdings in shares of Cintas Corporation by 1.0% in the second quarter. QS Investors LLC now owns 995 shares of the business services provider’s stock valued at $125,000 after acquiring an additional 10 shares in the last quarter. Alps Advisors Inc. boosted its holdings in shares of Cintas Corporation by 0.3% in the second quarter. Alps Advisors Inc. now owns 4,043 shares of the business services provider’s stock valued at $510,000 after acquiring an additional 11 shares in the last quarter. Finally, D.A. Davidson & CO. boosted its holdings in shares of Cintas Corporation by 0.8% in the second quarter. D.A. Davidson & CO. now owns 1,574 shares of the business services provider’s stock valued at $198,000 after acquiring an additional 12 shares in the last quarter. 64.76% of the stock is currently owned by institutional investors and hedge funds.
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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