Cintas (NASDAQ:CTAS) Shares Up 6% on Earnings Beat

Cintas Corporation (NASDAQ:CTAS)’s stock price rose 6% on Thursday following a stronger than expected earnings report. The company traded as high as $205.00 and last traded at $203.9810. 398,657 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 2,142,386 shares. The stock had previously closed at $192.37.

The business services provider reported $1.29 EPS for the quarter, beating analysts’ consensus estimates of $1.24 by $0.05. The company had revenue of $2.91 billion during the quarter, compared to the consensus estimate of $2.87 billion. Cintas had a return on equity of 42.05% and a net margin of 17.75%.Cintas’s quarterly revenue was up 8.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.09 earnings per share. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS.

Trending Headlines about Cintas

Here are the key news stories impacting Cintas this week:

• Positive Sentiment: Cintas reported better-than-expected Q4 results, with adjusted EPS of $1.29 and revenue of $2.91 billion, both above Wall Street estimates. The company also posted 8.9% revenue growth and record margins, reinforcing the bullish reaction. Cintas earnings report
• Positive Sentiment: Bank of America upgraded Cintas to Buy from Neutral and lifted its price target to $230 from $200, citing improving labor market conditions, growth in adjacent product categories, and margin expansion from supply-chain and distribution initiatives. Bank of America upgrade article
• Positive Sentiment: Robert W. Baird also raised its price target to $214 and kept an Outperform rating, while other analysts increased forecasts after the earnings beat, adding to momentum around the stock. Analyst forecast increases
• Positive Sentiment: Management’s fiscal 2027 guidance called for revenue of $12.10 billion to $12.25 billion and EPS of $5.36 to $5.50, signaling confidence in continued growth even as the company works through the pending UniFirst acquisition. Cintas earnings release
• Neutral Sentiment: Royal Bank of Canada reaffirmed a Sector Perform rating with a $206 target, essentially in line with the recent trading level, suggesting some analysts see the current valuation as more balanced. RBC rating note
• Neutral Sentiment: One article questioned whether Cintas is fully valued after its strong five-year run, reflecting growing debate about how much upside is already priced in. Valuation article

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CTAS. Stifel Nicolaus dropped their target price on shares of Cintas from $222.00 to $190.00 and set a “hold” rating for the company in a report on Thursday, March 26th. UBS Group reissued a “buy” rating and set a $230.00 price target (up from $228.00) on shares of Cintas in a research note on Thursday. Truist Financial lowered their price target on Cintas from $255.00 to $225.00 and set a “buy” rating on the stock in a report on Monday, June 15th. Bank of America raised Cintas from a “neutral” rating to a “buy” rating and raised their price objective for the company from $200.00 to $230.00 in a research note on Thursday. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $250.00 price objective (up from $245.00) on shares of Cintas in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $212.31.

Insider Buying and Selling

In other Cintas news, Director Ronald W. Tysoe sold 4,666 shares of the firm’s stock in a transaction dated Monday, April 20th. The shares were sold at an average price of $178.87, for a total transaction of $834,607.42. Following the completion of the transaction, the director directly owned 22,448 shares in the company, valued at approximately $4,015,273.76. This trade represents a 17.21% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 14.90% of the company’s stock.

Institutional Trading of Cintas

Institutional investors and hedge funds have recently modified their holdings of the business. Norges Bank purchased a new position in shares of Cintas during the 4th quarter worth approximately $923,672,000. Two Sigma Investments LP lifted its stake in Cintas by 5,641.3% in the 3rd quarter. Two Sigma Investments LP now owns 1,016,671 shares of the business services provider’s stock valued at $208,682,000 after buying an additional 998,963 shares in the last quarter. SG Americas Securities LLC lifted its stake in Cintas by 2,653.0% in the 4th quarter. SG Americas Securities LLC now owns 1,003,031 shares of the business services provider’s stock valued at $188,640,000 after buying an additional 966,597 shares in the last quarter. Voloridge Investment Management LLC grew its holdings in Cintas by 275.2% during the 3rd quarter. Voloridge Investment Management LLC now owns 1,123,237 shares of the business services provider’s stock valued at $230,556,000 after buying an additional 823,885 shares during the last quarter. Finally, Freestone Grove Partners LP raised its holdings in shares of Cintas by 5,341.8% in the third quarter. Freestone Grove Partners LP now owns 747,109 shares of the business services provider’s stock worth $153,352,000 after acquiring an additional 733,380 shares during the last quarter. Hedge funds and other institutional investors own 63.46% of the company’s stock.

Cintas Stock Performance

The company has a quick ratio of 1.74, a current ratio of 1.43 and a debt-to-equity ratio of 0.28. The stock has a fifty day moving average price of $174.85 and a two-hundred day moving average price of $182.71. The company has a market capitalization of $82.52 billion, a price-to-earnings ratio of 58.26, a PEG ratio of 3.05 and a beta of 0.94.

Cintas Company Profile

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.