Cintas Co. (NASDAQ:CTAS) to Issue Quarterly Dividend of $0.39

Cintas Co. (NASDAQ:CTAS) announced a quarterly dividend on Tuesday, April 8th, RTT News reports. Stockholders of record on Thursday, May 15th will be paid a dividend of 0.39 per share by the business services provider on Friday, June 13th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 0.82%.

Cintas has raised its dividend payment by an average of 19.6% annually over the last three years and has increased its dividend every year for the last 42 years. Cintas has a dividend payout ratio of 29.4% meaning its dividend is sufficiently covered by earnings. Analysts expect Cintas to earn $4.77 per share next year, which means the company should continue to be able to cover its $1.56 annual dividend with an expected future payout ratio of 32.7%.

Cintas Stock Performance

NASDAQ:CTAS traded down $0.79 during trading hours on Tuesday, reaching $189.75. 2,233,636 shares of the stock were exchanged, compared to its average volume of 1,664,689. The stock has a market capitalization of $76.57 billion, a P/E ratio of 45.81, a P/E/G ratio of 3.98 and a beta of 1.20. Cintas has a 52 week low of $162.16 and a 52 week high of $228.12. The firm has a 50 day simple moving average of $201.24 and a 200-day simple moving average of $204.48. The company has a quick ratio of 1.38, a current ratio of 1.58 and a debt-to-equity ratio of 0.47.

Cintas (NASDAQ:CTAS) last issued its quarterly earnings data on Wednesday, March 26th. The business services provider reported $1.13 earnings per share for the quarter, beating analysts’ consensus estimates of $1.05 by $0.08. Cintas had a net margin of 17.23% and a return on equity of 40.62%. The business had revenue of $2.61 billion for the quarter, compared to analysts’ expectations of $2.60 billion. During the same period in the previous year, the business earned $3.84 earnings per share. The company’s revenue was up 8.4% on a year-over-year basis. As a group, sell-side analysts forecast that Cintas will post 4.31 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Cintas

A hedge fund recently raised its stake in Cintas stock. Brighton Jones LLC lifted its position in shares of Cintas Co. (NASDAQ:CTAS) by 9.3% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,268 shares of the business services provider’s stock after purchasing an additional 108 shares during the quarter. Brighton Jones LLC’s holdings in Cintas were worth $232,000 as of its most recent filing with the Securities & Exchange Commission. 63.46% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CTAS. Wells Fargo & Company upped their target price on Cintas from $184.00 to $196.00 and gave the company an “underweight” rating in a report on Thursday, March 27th. Citigroup assumed coverage on Cintas in a research report on Monday, February 24th. They issued a “sell” rating and a $161.00 price objective for the company. Morgan Stanley upped their target price on shares of Cintas from $195.00 to $213.00 and gave the stock an “equal weight” rating in a report on Thursday, March 27th. Robert W. Baird upped their price objective on Cintas from $200.00 to $227.00 and gave the stock a “neutral” rating in a report on Thursday, March 27th. Finally, The Goldman Sachs Group increased their target price on Cintas from $211.00 to $233.00 and gave the company a “buy” rating in a research note on Thursday, March 27th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $210.58.

About Cintas

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.