Cintas (NASDAQ:CTAS) Shares to Split on Thursday, September 12th
Cintas Co. (NASDAQ:CTAS) is set for a 4-1 stock split on September 12th, following an announcement on May 2nd. Shareholders will receive new shares after market close on September 11th. The company reported strong earnings with a $0.99 EPS, surpassing estimates, and revenues increased by 8.2% year-over-year. Additionally, Cintas declared a dividend increase from $0.35 to $0.56, payable on September 3rd. Analysts generally affirm a "Hold" rating with varying target prices. Insiders maintain a significant portion of shares, indicating confidence in the company.
Cintas Co. (NASDAQ:CTAS - Free Report) shares are set to split on the morning of 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 Price Performance
- Parabolic Rise of This Stock Shows No Signs of Slowing
Shares of CTAS opened at $793.66 on Tuesday. The business's 50-day moving average is $740.13 and its two-hundred day moving average is $688.42. The company has a market capitalization of $80.53 billion, a P/E ratio of 54.81, a P/E/G ratio of 4.06 and a beta of 1.31. Cintas has a fifty-two week low of $474.74 and a fifty-two week high of $794.82. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74.
Cintas (NASDAQ:CTAS - Get Free Report) last issued its earnings results on Thursday, July 18th. The business services provider reported $3.99 EPS for the quarter, topping analysts' consensus estimates of $3.80 by $0.19. 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 was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $3.33 earnings per share. Research analysts predict that Cintas will post 16.62 earnings per share for the current year.
Cintas Increases Dividend
- UniFirst Stock: Value-Building Sends a Signal to the Market
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 3rd. Shareholders of record on Thursday, August 15th will be issued a $1.56 dividend. This is a boost from Cintas's previous quarterly dividend of $1.35. The ex-dividend date of this dividend is Thursday, August 15th. This represents a $6.24 dividend on an annualized basis and a yield of 0.79%. Cintas's payout ratio is presently 43.09%.
Cintas announced that its board has approved a share buyback plan on Tuesday, July 23rd that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the business services provider to purchase up to 1.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company's leadership believes its shares are undervalued.
Wall Street Analysts Forecast Growth
- Cintas or UniFirst: Investors Win Either Way
CTAS has been the subject of a number of analyst reports. Truist Financial upped their price target on Cintas from $775.00 to $850.00 and gave the stock a "buy" rating in a report on Friday, July 19th. UBS Group increased their target price on Cintas from $790.00 to $874.00 and gave the company a "buy" rating in a research report on Friday, July 19th. Redburn Atlantic started coverage on shares of Cintas in a report on Friday, August 9th. They issued a "neutral" rating and a $670.00 price target for the company. Citigroup downgraded shares of Cintas from a "neutral" rating to a "sell" rating and increased their price objective for the company from $530.00 to $570.00 in a report on Friday, May 24th. Finally, Stifel Nicolaus boosted their target price on shares of Cintas from $667.00 to $798.00 and gave the stock a "hold" rating in a research note on Friday, July 19th. Two investment 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.com, the company currently has a consensus rating of "Hold" and an average target price of $742.36.
Check Out Our Latest Report on Cintas
Insiders Place Their Bets
In related news, Director Gerald S. Adolph sold 1,100 shares of the company's stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $765.72, for a total value of $842,292.00. Following the completion of the sale, the director now owns 31,452 shares of the company's stock, valued at $24,083,425.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 15.10% of the stock is currently owned by corporate insiders.
Hedge Funds Weigh In On Cintas
A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in Cintas by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 10,299,288 shares of the business services provider's stock worth $6,206,969,000 after buying an additional 112,361 shares during the period. Norges Bank acquired a new stake in Cintas in the 4th quarter valued at approximately $872,895,000. Bank of New York Mellon Corp lifted its stake in Cintas by 3.5% during the first quarter. Bank of New York Mellon Corp now owns 806,369 shares of the business services provider's stock worth $554,000,000 after purchasing an additional 27,470 shares in the last quarter. Legal & General Group Plc grew its stake in shares of Cintas by 0.4% in the second quarter. Legal & General Group Plc now owns 780,265 shares of the business services provider's stock valued at $546,388,000 after buying an additional 3,471 shares in the last quarter. Finally, Brown Advisory Inc. lifted its stake in Cintas by 2.2% during the 4th quarter. Brown Advisory Inc. now owns 726,515 shares of the business services provider's stock worth $437,842,000 after acquiring an additional 15,444 shares in the last quarter. 63.46% of the stock is currently owned by hedge funds and other institutional investors.
About Cintas
(Get Free Report)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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