Cintas (NASDAQ:CTAS) Shares Gap Down – Here’s Why

Cintas (NASDAQ:CTAS) Shares Gap Down – Here’s Why

Cintas Co. (NASDAQ:CTAS – Get Free Report)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $204.39, but opened at $192.66. Cintas shares last traded at $190.57, with a volume of 631,129 shares.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on CTAS shares. Robert W. Baird lifted their price objective on shares of Cintas from $194.00 to $209.00 and gave the company a “neutral” rating in a research report on Thursday, September 26th. Royal Bank of Canada upped their price objective on shares of Cintas from $181.00 to $215.00 and gave the stock a “sector perform” rating in a research report on Thursday, September 26th. Jefferies Financial Group reduced their price target on shares of Cintas from $730.00 to $200.00 and set a “hold” rating on the stock in a research note on Thursday, September 26th. Wells Fargo & Company upped their price objective on Cintas from $184.00 to $191.00 and gave the company an “underweight” rating in a research note on Thursday, September 26th. Finally, Truist Financial lifted their price objective on Cintas from $212.50 to $225.00 and gave the stock a “buy” rating in a research note on Tuesday, September 17th. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $200.77.

Cintas Trading Down 10.6 %

The company has a debt-to-equity ratio of 0.50, a current ratio of 1.53 and a quick ratio of 1.33. The firm has a market cap of $73.72 billion, a P/E ratio of 46.16, a PEG ratio of 4.15 and a beta of 1.33. The stock has a 50 day moving average of $215.20 and a 200 day moving average of $203.00.

Cintas (NASDAQ:CTAS – Get Free Report) last issued its earnings results on Thursday, December 19th. The business services provider reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.08. The business had revenue of $2.56 billion during the quarter, compared to analyst estimates of $2.56 billion. Cintas had a return on equity of 39.56% and a net margin of 16.80%. Cintas’s revenue for the quarter was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.61 earnings per share. As a group, equities research analysts predict that Cintas Co. will post 4.23 EPS for the current year.

Cintas Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, December 13th. Shareholders of record on Friday, November 15th were paid a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 0.85%. The ex-dividend date of this dividend was Friday, November 15th. Cintas’s dividend payout ratio is presently 39.39%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CTAS. Raymond James Financial Services Advisors Inc. lifted its position in Cintas by 9.1% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 17,545 shares of the business services provider’s stock valued at $12,286,000 after purchasing an additional 1,462 shares during the last quarter. First Horizon Advisors Inc. increased its position in shares of Cintas by 119.6% in the second quarter. First Horizon Advisors Inc. now owns 235 shares of the business services provider’s stock valued at $165,000 after acquiring an additional 128 shares during the period. Summit Global Investments bought a new stake in shares of Cintas in the second quarter worth about $349,000. &PARTNERS increased its holdings in Cintas by 41.9% during the 2nd quarter. &PARTNERS now owns 1,300 shares of the business services provider’s stock valued at $910,000 after purchasing an additional 384 shares during the period. Finally, Secure Asset Management LLC bought a new position in Cintas during the 2nd quarter valued at approximately $323,000. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Cintas Company Profile 

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.

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