Cintas (NASDAQ:CTAS) Reaches New 1-Year High - Time to Buy?

Cintas Co. (NASDAQ:CTAS - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday . The company traded as high as $211.97 and last traded at $211.82, with a volume of 509909 shares changing hands. The stock had previously closed at $208.05.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Barclays boosted their price target on Cintas from $210.00 to $245.00 and gave the company an "overweight" rating in a report on Friday, September 27th. Truist Financial boosted their price target on Cintas from $212.50 to $225.00 and gave the company a "buy" rating in a report on Tuesday, September 17th. Stifel Nicolaus boosted their price target on Cintas from $166.75 to $199.50 and gave the company a "hold" rating in a report on Friday, July 19th. The Goldman Sachs Group boosted their price target on Cintas from $212.00 to $236.00 and gave the company a "buy" rating in a report on Thursday, September 26th. Finally, Robert W. Baird upped their target price on Cintas from $194.00 to $209.00 and gave the stock a "neutral" rating in a research note on Thursday, September 26th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Cintas has a consensus rating of "Hold" and an average target price of $199.63.

Cintas Stock Performance

The company has a market capitalization of $21.46 billion, a price-to-earnings ratio of 14.37, a P/E/G ratio of 4.12 and a beta of 1.32. 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 firm has a 50-day simple moving average of $212.01 and a two-hundred day simple moving average of $187.64.

Cintas (NASDAQ:CTAS - Get Free Report) last released its earnings results on Wednesday, September 25th. The business services provider reported $1.10 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.10. The company had revenue of $2.50 billion during the quarter, compared to the consensus estimate of $2.49 billion. Cintas had a return on equity of 39.56% and a net margin of 16.80%. Cintas's revenue was up 6.8% compared to the same quarter last year. During the same period in the previous year, the company posted $3.70 EPS. On average, sell-side analysts anticipate that Cintas Co. will post 4.23 EPS for the current fiscal year.

Cintas Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were paid a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 0.74%. The ex-dividend date was Thursday, August 15th. Cintas's payout ratio is presently 10.77%.

Cintas declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, July 23rd that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the business services provider to buy up to 1.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

Insider Activity

In other news, Director Gerald S. Adolph sold 4,400 shares of Cintas stock in a transaction dated Wednesday, July 24th. The stock was sold at an average price of $191.43, for a total value of $842,292.00. Following the completion of the transaction, the director now owns 125,808 shares in the company, valued at approximately $24,083,425.44. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Company insiders own 15.10% of the company's stock.

Institutional Investors Weigh In On Cintas

Several institutional investors have recently added to or reduced their stakes in CTAS. LGT Financial Advisors LLC lifted its stake in Cintas by 311.1% during the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider's stock worth $26,000 after purchasing an additional 28 shares during the last quarter. Atwood & Palmer Inc. purchased a new stake in Cintas during the second quarter worth approximately $27,000. Pathway Financial Advisers LLC purchased a new stake in Cintas during the first quarter worth approximately $29,000. Rise Advisors LLC purchased a new stake in Cintas during the first quarter worth approximately $30,000. Finally, Grove Bank & Trust lifted its stake in Cintas by 1,340.0% during the third quarter. Grove Bank & Trust now owns 144 shares of the business services provider's stock worth $30,000 after purchasing an additional 134 shares during the last quarter. Hedge funds and other institutional investors own 63.46% of the company's stock.

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.

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