Cintas Co. (NASDAQ:CTAS) to Issue $0.39 Quarterly Dividend

Cintas Co. (NASDAQ:CTAS) announced a quarterly dividend on Tuesday, October 29th, RTT News reports. Investors of record on Friday, November 15th will be paid a dividend of 0.39 per share by the business services provider on Friday, December 13th. This represents a $1.56 annualized dividend and a dividend yield of 0.75%.

Cintas has raised its dividend payment by an average of 92.6% annually over the last three years and has increased its dividend annually for the last 42 consecutive years. Cintas has a payout ratio of 33.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Cintas to earn $4.62 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 33.8%.

Cintas Stock Performance

Shares of NASDAQ:CTAS traded up $0.55 during midday trading on Tuesday, reaching $209.14. 1,285,654 shares of the company’s stock traded hands, compared to its average volume of 1,460,269. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.33 and a current ratio of 1.53. The company has a market cap of $21.22 billion, a price-to-earnings ratio of 14.41, a P/E/G ratio of 4.12 and a beta of 1.32. The stock has a 50 day moving average of $216.83 and a 200 day moving average of $190.88. Cintas has a one year low of $124.07 and a one year high of $215.37.

Cintas (NASDAQ:CTAS) last announced its earnings results on Wednesday, September 25th. The business services provider reported $1.10 earnings per share for the quarter, beating analysts’ consensus estimates of $1.00 by $0.10. The business had revenue of $2.50 billion during the quarter, compared to analyst estimates of $2.49 billion. Cintas had a net margin of 16.80% and a return on equity of 39.56%. The company’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same period in the previous year, the business earned $3.70 EPS. As a group, equities research analysts anticipate that Cintas will post 4.23 EPS for the current fiscal year.

Cintas declared that its board has initiated a share repurchase program on Tuesday, July 23rd that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the business services provider to buy up to 1.3% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

A number of equities analysts recently commented on CTAS shares. Wells Fargo & Company raised their target price on Cintas from $184.00 to $191.00 and gave the stock an “underweight” rating in a report on Thursday, September 26th. Robert W. Baird boosted their price target on Cintas from $194.00 to $209.00 and gave the stock a “neutral” rating in a report on Thursday, September 26th. Truist Financial increased their price objective on shares of Cintas from $212.50 to $225.00 and gave the company a “buy” rating in a report on Tuesday, September 17th. Morgan Stanley raised their target price on shares of Cintas from $170.00 to $185.00 and gave the company an “equal weight” rating in a research note on Thursday, September 26th. Finally, The Goldman Sachs Group raised their price objective on Cintas from $212.00 to $236.00 and gave the company a “buy” rating in a research report on Thursday, September 26th. 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. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $199.63.

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.