Cintas Stock to Split on Thursday, September 12th (NASDAQ:CTAS)

Cintas Co. (NASDAQ:CTAS)’s stock is scheduled to split before the market opens on Thursday, September 12th. The 4-1 split was announced on Thursday, May 2nd. The newly created shares will be payable to shareholders after the closing bell on Wednesday, September 11th.

Cintas Trading Up 0.4 %

NASDAQ CTAS traded up $3.41 during trading hours on Wednesday, hitting $819.83. 355,592 shares of the company were exchanged, compared to its average volume of 370,478. Cintas has a 52 week low of $474.74 and a 52 week high of $820.93. The company has a quick ratio of 1.52, a current ratio of 1.74 and a debt-to-equity ratio of 0.47. The stock has a 50-day moving average price of $760.78 and a 200 day moving average price of $702.63. The stock has a market cap of $83.18 billion, a PE ratio of 56.62, a price-to-earnings-growth ratio of 4.16 and a beta of 1.32.

Cintas (NASDAQ:CTAS) last released its earnings results on Thursday, July 18th. The business services provider reported $1.00 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.05. The firm had revenue of $2.47 billion for the quarter, compared to the consensus estimate of $2.47 billion. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The company’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.83 EPS. Analysts forecast that Cintas will post 16.64 earnings per share for the current fiscal year.

Cintas Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were issued a $0.39 dividend. The ex-dividend date was Thursday, August 15th. This represents a $1.56 annualized dividend and a dividend yield of 0.19%. Cintas’s dividend payout ratio (DPR) is presently 43.09%.

Cintas declared that its Board of Directors has approved a stock repurchase plan on Tuesday, July 23rd that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the business services provider to purchase up to 1.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

CTAS has been the subject of several analyst reports. Redburn Atlantic began coverage on shares of Cintas in a research note on Friday, August 9th. They issued a “neutral” rating and a $167.50 price objective for the company. Truist Financial increased their target price on Cintas from $193.75 to $212.50 and gave the stock a “buy” rating in a research note on Friday, July 19th. Wells Fargo & Company upgraded shares of Cintas to a “strong sell” rating in a report on Tuesday, August 13th. Robert W. Baird reissued a “neutral” rating and issued a $193.75 price objective (up from $187.50) on shares of Cintas in a research report on Friday, July 19th. Finally, Morgan Stanley lifted their price target on shares of Cintas from $143.75 to $156.25 and gave the company an “equal weight” rating in a research note on Friday, July 19th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $185.59.

Insider Transactions at Cintas

In other news, Director Gerald S. Adolph sold 4,400 shares of the firm’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total value of $842,292.00. Following the sale, the director now directly owns 125,808 shares in the company, valued at approximately $24,083,425.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 15.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. LGT Financial Advisors LLC increased its holdings in shares of Cintas by 311.1% during 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 position in Cintas during the 2nd quarter valued at approximately $27,000. Pathway Financial Advisers LLC purchased a new position in shares of Cintas in the first quarter worth $29,000. Rise Advisors LLC acquired a new stake in shares of Cintas during the first quarter worth $30,000. Finally, Meeder Asset Management Inc. grew its holdings in shares of Cintas by 226.7% during the second 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. 63.46% of the stock is owned by institutional investors and hedge funds.

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.