Zacks Investment Research upgraded shares of Cintas Corporation (NASDAQ:CTAS) from a hold rating to a buy rating in a research note released on Tuesday. The brokerage currently has $168.00 price objective on the business services provider’s stock.
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 combined company is likely to cater to over one billion business customers with an extended product portfolio and additional processing capacity. The synergies from the combined operations are expected to yield $130 million to $140 million in cost savings from the fourth year of its operation. Cintas also 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 outperformed the industry year to date. However, volatility in raw material prices and third-party supply constraints remain potential headwinds for the company.”
A number of other brokerages have also recently issued reports on CTAS. Oppenheimer Holdings, Inc. reiterated a hold rating on shares of Cintas Corporation in a research note on Wednesday, September 27th. Stifel Nicolaus restated a hold rating and issued a $138.00 price target (up previously from $136.00) on shares of Cintas Corporation in a research note on Wednesday, September 27th. BidaskClub upgraded Cintas Corporation from a sell rating to a hold rating in a research note on Wednesday, August 23rd. Royal Bank Of Canada restated a hold rating and issued a $130.00 price target on shares of Cintas Corporation in a research note on Friday, July 21st. Finally, Nomura cut Cintas Corporation from a buy rating to a neutral rating in a research note on Wednesday, June 28th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have assigned a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $143.00.
Cintas Corporation (NASDAQ:CTAS) last announced its quarterly earnings data on Tuesday, September 26th. The business services provider reported $1.48 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.30 by $0.18. The business had revenue of $1.61 billion during the quarter, compared to analysts’ expectations of $1.57 billion. Cintas Corporation had a return on equity of 23.71% and a net margin of 9.79%. The firm’s quarterly revenue was up 27.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.26 earnings per share.
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In related news, CFO J. Michael Hansen sold 800 shares of Cintas Corporation stock in a transaction on Friday, August 11th. The stock was sold at an average price of $130.75, for a total value of $104,600.00. Following the completion of 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gerald S. Adolph sold 2,000 shares of Cintas Corporation stock in a transaction on Tuesday, August 15th. The stock was sold at an average price of $133.69, for a total value of $267,380.00. Following the completion of the sale, the director now directly owns 13,135 shares of the company’s stock, 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 institutional investors and hedge funds have recently modified their holdings of the stock. Park National Corp OH grew its holdings in shares of Cintas Corporation by 186.4% in the third quarter. Park National Corp OH now owns 8,912 shares of the business services provider’s stock worth $1,286,000 after acquiring an additional 5,800 shares during the period. Toronto Dominion Bank grew its holdings in shares of Cintas Corporation by 26.2% in the second quarter. Toronto Dominion Bank now owns 29,293 shares of the business services provider’s stock worth $3,692,000 after acquiring an additional 6,073 shares during the period. WINTON GROUP Ltd bought a new stake in shares of Cintas Corporation in the second quarter worth $2,027,000. Mountain Capital Investment Advisors Inc bought a new stake in shares of Cintas Corporation in the second quarter worth $120,000. Finally, Covington Capital Management bought a new stake in shares of Cintas Corporation in the second quarter worth $209,000. 64.77% of the stock is owned by institutional investors.
Cintas Corporation Company Profile
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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