Mount Lucas Management LP Buys New Position in Cintas Co. (NASDAQ:CTAS)

Mount Lucas Management LP bought a new stake in Cintas Co. (NASDAQ:CTAS) during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 3,772 shares of the business services provider’s stock, valued at approximately $2,641,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. LGT Financial Advisors LLC grew its stake in Cintas by 311.1% in the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider’s stock valued at $26,000 after purchasing an additional 28 shares in the last quarter. Atwood & Palmer Inc. bought a new position in Cintas in the second quarter valued at approximately $27,000. Pathway Financial Advisers LLC bought a new position in Cintas in the first quarter valued at approximately $29,000. Rise Advisors LLC bought a new position in Cintas in the first quarter valued at approximately $30,000. Finally, Webster Bank N. A. bought a new position in Cintas in the first quarter valued at approximately $38,000. Institutional investors and hedge funds own 63.46% of the company’s stock.

Cintas Stock Performance

CTAS traded down $17.02 during trading on Friday, hitting $781.90. The stock had a trading volume of 375,733 shares, compared to its average volume of 370,279. The company has a 50 day moving average price of $756.32 and a 200-day moving average price of $699.52. The firm has a market cap of $79.33 billion, a price-to-earnings ratio of 54.00, a P/E/G ratio of 4.28 and a beta of 1.32. Cintas Co. has a one year low of $474.74 and a one year high of $812.01. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.74 and a quick ratio of 1.52.

Cintas’s stock is going to split 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 market closes on Wednesday, September 11th.

Cintas (NASDAQ:CTAS) last announced its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.99 earnings per share for the quarter, beating the consensus estimate of $3.80 by $0.19. The firm had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.47 billion. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The company’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.33 EPS. As a group, research analysts predict that Cintas Co. will post 16.64 EPS for the current year.

Cintas declared that its board has approved a share repurchase program on Tuesday, July 23rd that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the business services provider to buy up to 1.3% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Cintas Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were issued a dividend of $1.56 per share. The ex-dividend date was Thursday, August 15th. This represents a $6.24 dividend on an annualized basis and a dividend yield of 0.80%. This is a boost from Cintas’s previous quarterly dividend of $1.35. Cintas’s payout ratio is 43.09%.

Insider Transactions at Cintas

In other news, Director Gerald S. Adolph sold 1,100 shares of the business’s stock in a transaction on Wednesday, July 24th. The stock was sold at an average price of $765.72, for a total transaction of $842,292.00. Following the completion of the transaction, the director now owns 31,452 shares of the company’s stock, valued at approximately $24,083,425.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 15.10% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. StockNews.com upgraded Cintas from a “hold” rating to a “buy” rating in a research note on Friday, June 14th. Wells Fargo & Company upgraded Cintas to a “strong sell” rating in a research note on Tuesday, August 13th. Robert W. Baird reiterated a “neutral” rating and set a $775.00 target price (up from $750.00) on shares of Cintas in a research note on Friday, July 19th. Truist Financial lifted their target price on Cintas from $775.00 to $850.00 and gave the stock a “buy” rating in a research note on Friday, July 19th. Finally, Royal Bank of Canada downgraded Cintas from an “outperform” rating to a “sector perform” rating and set a $725.00 target price for the company. in a research note on Monday, July 15th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $742.36.

Cintas 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.