Investors Purchase Large Volume of Call Options on Cintas (NASDAQ:CTAS)

Cintas Corporation (NASDAQ:CTAS) was the recipient of some unusual options trading activity on Tuesday. Stock traders purchased 4,665 call options on the company. This represents an increase of approximately 196% compared to the typical daily volume of 1,574 call options.

Hedge Funds Weigh In On Cintas

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Riverbridge Partners LLC lifted its holdings in shares of Cintas by 7.7% during the first quarter. Riverbridge Partners LLC now owns 229,158 shares of the business services provider’s stock valued at $38,760,000 after purchasing an additional 16,437 shares in the last quarter. SEB Asset Management AB bought a new position in Cintas during the 1st quarter valued at about $22,366,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Cintas by 2,286.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 736,620 shares of the business services provider’s stock valued at $138,536,000 after purchasing an additional 705,751 shares during the last quarter. Suncoast Equity Management grew its position in Cintas by 53.7% in the 4th quarter. Suncoast Equity Management now owns 23,845 shares of the business services provider’s stock worth $4,485,000 after purchasing an additional 8,330 shares during the period. Finally, Mizuho Markets Americas LLC lifted its holdings in shares of Cintas by 9,200.6% during the 4th quarter. Mizuho Markets Americas LLC now owns 117,745 shares of the business services provider’s stock valued at $22,144,000 after buying an additional 116,479 shares during the period. 63.46% of the stock is owned by institutional investors.

Cintas Stock Down 0.8%

Shares of Cintas stock traded down $1.62 during trading on Tuesday, hitting $202.39. The company’s stock had a trading volume of 271,818 shares, compared to its average volume of 2,195,248. Cintas has a 52 week low of $161.16 and a 52 week high of $226.75. The company has a market capitalization of $80.99 billion, a PE ratio of 54.11, a P/E/G ratio of 3.30 and a beta of 0.91. The company has a fifty day simple moving average of $183.73 and a two-hundred day simple moving average of $184.14. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.43.

Cintas (NASDAQ:CTAS) last announced its quarterly earnings data on Wednesday, July 15th. The business services provider reported $1.29 earnings per share for the quarter, topping analysts’ consensus estimates of $1.24 by $0.05. Cintas had a net margin of 17.75% and a return on equity of 42.05%. The business had revenue of $2.91 billion for the quarter, compared to analysts’ expectations of $2.87 billion. During the same quarter in the prior year, the company earned $1.09 earnings per share. The business’s revenue was up 8.9% compared to the same quarter last year. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. Equities research analysts predict that Cintas will post 5.49 earnings per share for the current year.

Cintas Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be paid a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Friday, August 14th. This is a positive change from Cintas’s previous quarterly dividend of $0.45. Cintas’s dividend payout ratio (DPR) is presently 48.13%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on CTAS. Weiss Ratings raised Cintas from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, July 10th. Robert W. Baird increased their price objective on Cintas from $200.00 to $214.00 and gave the stock an “outperform” rating in a report on Thursday, July 16th. Wells Fargo & Company restated an “overweight” rating and issued a $250.00 price objective (up from $245.00) on shares of Cintas in a report on Thursday, July 16th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $231.00 target price on shares of Cintas in a research report on Wednesday, July 15th. Finally, Truist Financial reduced their price target on shares of Cintas from $255.00 to $225.00 and set a “buy” rating on the stock in a research report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $212.31.

About Cintas

Cintas Corporation (NASDAQ: CTAS) is a provider of business services and products focused on workplace appearance, safety and facility maintenance. The company is best known for its uniform rental and corporate apparel programs, which include rental, leasing and direct-purchase options, laundering and garment repair. Cintas markets its services to a wide range of end-users, including manufacturing, food service, healthcare, hospitality, retail and government customers.

Beyond uniforms, Cintas offers a suite of facility services and products designed to help organizations maintain clean, safe and compliant workplaces.