Short Interest in Cintas Co. (NASDAQ:CTAS) Increases By 428.0%

Cintas Co. (NASDAQ:CTAS) saw a significant growth in short interest during the month of September. As of September 15th, there was short interest totalling 7,550,000 shares, a growth of 428.0% from the August 31st total of 1,430,000 shares. Based on an average daily trading volume, of 1,630,000 shares, the short-interest ratio is presently 4.6 days.

Cintas Price Performance

Shares of CTAS traded down $4.66 on Friday, reaching $202.35. The stock had a trading volume of 2,332,229 shares, compared to its average volume of 1,492,194. The firm has a 50-day moving average of $208.63 and a 200 day moving average of $183.66. The firm has a market capitalization of $20.53 billion, a PE ratio of 14.09, a PEG ratio of 4.09 and a beta of 1.32. Cintas has a twelve month low of $119.69 and a twelve month high of $211.57. The company has a quick ratio of 1.52, a current ratio of 1.74 and a debt-to-equity ratio of 0.47.

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

Cintas declared that its Board of Directors has approved a share buyback 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 buy up to 1.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Cintas Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were given a dividend of $0.39 per share. The ex-dividend date was Thursday, August 15th. This represents a $1.56 dividend on an annualized basis and a yield of 0.77%. Cintas’s dividend payout ratio (DPR) is 10.77%.

Insiders Place Their Bets

In other news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the transaction, the director now owns 125,808 shares of the company’s stock, valued at approximately $24,083,425.44. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 15.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cintas

Institutional investors and hedge funds have recently modified their holdings of the stock. LGT Financial Advisors LLC grew its position in Cintas by 311.1% in the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider’s stock valued at $26,000 after acquiring an additional 28 shares in the last quarter. Atwood & Palmer Inc. acquired a new stake in Cintas during the 2nd quarter valued at $27,000. Pathway Financial Advisers LLC purchased a new stake in Cintas during the 1st quarter worth $29,000. Rise Advisors LLC acquired a new position in Cintas in the 1st quarter worth $30,000. Finally, Meeder Asset Management Inc. boosted its position in Cintas by 226.7% in the 2nd quarter. Meeder Asset Management Inc. now owns 49 shares of the business services provider’s stock valued at $34,000 after buying an additional 34 shares during the last quarter. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on CTAS. Morgan Stanley boosted their price target on shares of Cintas from $170.00 to $185.00 and gave the company an “equal weight” rating in a research note on Thursday. Robert W. Baird boosted their price target on shares of Cintas from $194.00 to $209.00 and gave the stock a “neutral” rating in a research note on Thursday. Redburn Atlantic started coverage on shares of Cintas in a report on Friday, August 9th. They issued a “neutral” rating and a $167.50 price objective for the company. UBS Group raised their price target on shares of Cintas from $219.00 to $240.00 and gave the company a “buy” rating in a research report on Thursday. Finally, Truist Financial upped their price target on Cintas from $212.50 to $225.00 and gave the stock a “buy” rating in a report on Tuesday, September 17th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, Cintas presently has a consensus rating of “Hold” and a consensus price target of $199.63.

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.