Cintas Corporation (CTAS) Rating Increased to Buy at Zacks Investment Research

Cintas Corporation (NASDAQ:CTAS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage presently has a $168.00 price objective on the business services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 12.30% from the company’s current price.

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 research analysts also recently issued reports on the stock. Instinet downgraded shares of Cintas Corporation from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $142.00 to $130.00 in a research note on Tuesday, June 27th. Nomura downgraded shares of Cintas Corporation from a “buy” rating to a “neutral” rating in a research note on Wednesday, June 28th. Deutsche Bank AG set a $130.00 price target on shares of Cintas Corporation and gave the stock a “hold” rating in a research note on Friday, July 21st. Royal Bank Of Canada reiterated a “hold” rating and issued a $130.00 price target on shares of Cintas Corporation in a research note on Friday, July 21st. Finally, Morgan Stanley reiterated an “underweight” rating and issued a $117.00 price target (up previously from $107.00) on shares of Cintas Corporation in a research note on Tuesday, July 25th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and three have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $143.00.

Cintas Corporation (NASDAQ:CTAS) traded up 0.27% during midday trading on Tuesday, reaching $150.00. 264,256 shares of the company were exchanged. Cintas Corporation has a 52 week low of $102.07 and a 52 week high of $150.25. The firm has a 50-day moving average price of $137.66 and a 200-day moving average price of $129.53. The company has a market capitalization of $15.93 billion, a PE ratio of 29.41 and a beta of 0.86.

Cintas Corporation (NASDAQ:CTAS) last issued its quarterly earnings results on Tuesday, September 26th. The business services provider reported $1.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.30 by $0.18. Cintas Corporation had a net margin of 9.79% and a return on equity of 23.71%. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.57 billion. During the same quarter in the previous year, the firm earned $1.26 earnings per share. The firm’s quarterly revenue was up 27.2% on a year-over-year basis. Equities research analysts anticipate that Cintas Corporation will post $5.36 earnings per share for the current fiscal year.

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In other news, CFO J. Michael Hansen sold 800 shares of the business’s stock in a transaction that occurred on Friday, August 11th. The shares were sold at an average price of $130.75, for a total transaction of $104,600.00. Following the completion of the sale, the chief financial officer now owns 54,370 shares in the company, valued at approximately $7,108,877.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gerald S. Adolph sold 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 15th. The stock was sold at an average price of $133.69, for a total transaction of $267,380.00. Following the sale, the director now 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 currently owned by insiders.

Several large investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in shares of Cintas Corporation by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 9,266,612 shares of the business services provider’s stock worth $1,167,964,000 after buying an additional 191,507 shares during the last quarter. BlackRock Inc. raised its position in Cintas Corporation by 2.2% in the 2nd quarter. BlackRock Inc. now owns 6,607,462 shares of the business services provider’s stock valued at $832,804,000 after purchasing an additional 142,118 shares during the last quarter. State Street Corp raised its position in Cintas Corporation by 1.1% in the 1st quarter. State Street Corp now owns 4,900,672 shares of the business services provider’s stock valued at $620,135,000 after purchasing an additional 51,747 shares during the last quarter. FMR LLC raised its position in Cintas Corporation by 20.3% in the 2nd quarter. FMR LLC now owns 1,705,533 shares of the business services provider’s stock valued at $214,965,000 after purchasing an additional 288,029 shares during the last quarter. Finally, AQR Capital Management LLC raised its position in Cintas Corporation by 2.0% in the 1st quarter. AQR Capital Management LLC now owns 1,512,980 shares of the business services provider’s stock valued at $191,452,000 after purchasing an additional 30,228 shares during the last quarter. Institutional investors and hedge funds own 64.77% of the company’s stock.

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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