Morse Asset Management Inc Cuts Stake in Cintas Co. (NASDAQ:CTAS)

Morse Asset Management Inc cut its holdings in shares of Cintas Co. (NASDAQ:CTAS) by 4.5% during the 2nd quarter, HoldingsChannel reports. The fund owned 5,310 shares of the business services provider’s stock after selling 252 shares during the quarter. Morse Asset Management Inc’s holdings in Cintas were worth $3,718,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the business. Nisa Investment Advisors LLC grew its holdings in shares of Cintas by 2.2% during the 2nd quarter. Nisa Investment Advisors LLC now owns 39,097 shares of the business services provider’s stock valued at $27,378,000 after purchasing an additional 838 shares during the last quarter. QRG Capital Management Inc. boosted its position in Cintas by 111.5% during the second quarter. QRG Capital Management Inc. now owns 7,355 shares of the business services provider’s stock valued at $5,151,000 after buying an additional 3,878 shares during the period. Thoroughbred Financial Services LLC grew its stake in shares of Cintas by 105.7% during the second quarter. Thoroughbred Financial Services LLC now owns 5,020 shares of the business services provider’s stock valued at $3,515,000 after buying an additional 2,580 shares during the last quarter. Journey Advisory Group LLC increased its holdings in shares of Cintas by 17.1% in the second quarter. Journey Advisory Group LLC now owns 6,442 shares of the business services provider’s stock worth $4,511,000 after buying an additional 940 shares during the period. Finally, Bensler LLC lifted its stake in shares of Cintas by 4.7% in the 2nd quarter. Bensler LLC now owns 14,349 shares of the business services provider’s stock valued at $10,048,000 after acquiring an additional 646 shares during the last quarter. 63.46% of the stock is currently owned by institutional investors.

Cintas Stock Performance

Shares of CTAS opened at $204.16 on Monday. The company has a 50-day simple moving average of $206.76 and a two-hundred day simple moving average of $182.66. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.74 and a quick ratio of 1.52. The firm has a market capitalization of $20.71 billion, a PE ratio of 14.10, a price-to-earnings-growth ratio of 4.36 and a beta of 1.32. Cintas Co. has a one year low of $118.68 and a one year high of $209.12.

Cintas (NASDAQ:CTAS) last released its earnings results on Thursday, July 18th. The business services provider reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.95 by $0.05. The company 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 firm’s revenue for the quarter was up 8.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.83 EPS. On average, analysts anticipate that Cintas Co. will post 16.64 EPS for the current fiscal year.

Cintas announced that its Board of Directors has approved a share repurchase program on Tuesday, July 23rd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to purchase up to 1.3% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Cintas Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 3rd. Stockholders of record on Thursday, August 15th were given a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 0.76%. The ex-dividend date was Thursday, August 15th. Cintas’s dividend payout ratio is presently 10.77%.

Insider Buying and Selling

In related news, Director Gerald S. Adolph sold 4,400 shares of the business’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $191.43, for a total transaction of $842,292.00. Following the sale, the director now owns 125,808 shares of the company’s stock, valued at $24,083,425.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 15.10% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on CTAS. Stifel Nicolaus raised their price target on Cintas from $166.75 to $199.50 and gave the stock a “hold” rating in a research report on Friday, July 19th. Morgan Stanley raised their target price on shares of Cintas from $143.75 to $156.25 and gave the stock an “equal weight” rating in a report on Friday, July 19th. Royal Bank of Canada lowered shares of Cintas from an “outperform” rating to a “sector perform” rating and set a $181.25 price target for the company. in a report on Monday, July 15th. UBS Group raised their price target on shares of Cintas from $197.50 to $218.50 and gave the stock a “buy” rating in a report on Friday, July 19th. Finally, Robert W. Baird restated a “neutral” rating and issued a $193.75 price objective (up previously from $187.50) on shares of Cintas in a research report on Friday, July 19th. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $186.30.

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.