Morgan Stanley took its Cintas [CTAS] rating to the equivalent of Equal-Weight from Underweight, and the price target to $324 from $261, in a research note dated 2021-01-06. That figure represents around a -7.13% premium from where the company’s shares closed on Tuesday. Other analysts also revised their coverage, with BofA/Merrill’s analysts downgrading the shares from “a Buy” rating to “a Neutral” rating in a research note to investors issued in late May. Meanwhile, William Blair had lowered its rating on CTAS to “Mkt perform” from the earlier “an Outperform”, in a research note produced for clients April 06, 2020. In addition, there was a downgrade from Robert W. Baird on March 20, 2020. The rater changed CTAS from “an Outperform” to “a Neutral”.
Is Cintas Corporation [NASDAQ:CTAS] a Good Buy Right Now?
It should be noted that CTAS technical indicators for short, intermediate as well as long term progress have placed an overall average of 56% as Buy. The average signal changed from 88% Buy in the last week and compares with 100% Buy in the past month. Data from Cintas Corporation’s Trend Spotter indicated that the signals were Strengthening. The stock current average is 0.49 million shares in the past 20 days and the short term average signal indicates a 50% Buy. In the last 50 days, the average trading volume was 0.43 million shares while the medium term average advocated for 50% Buy. The average long-term signal stands at 100% Buy and the 100-day average volume stands at 0.43 million shares.
CTAS Price Performance
On Wall Street, Cintas Corporation [NASDAQ:CTAS] finished Tuesday’s session up 1.54% at $348.89. The stock went up to $349.04 at the same session while its lowest single day price was $338.42. In the last five days, it saw a fall of about -1.50%, Cintas Corporation shares dropped by almost -1.29% since the beginning of the year. However, the share price has dropped to as low as -5.50% below its one year high. On 01/04/21, the company shares recorded $354.74, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/05/21, the same year at $338.42. The company’s shares have inclined by 29.09% in the past year. The 50-day SMA achieved is $349.02 while the 200-day SMA is $292.43. Volume dropped to 0.51 million from 0.85 million in the previous session.
Cintas Corporation [CTAS] Valuation Measures
Notably, Cintas Corporation [CTAS] stock cannot be classified as a good candidate in the listing of underestimated low-priced Specialty Business Services companies to purchase soonest possible with the prevailing 12-month PE ratio of 43.10. The measure means the stock is exchanging at a premium as compared to the 20.45x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 5.12 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 1.04 which means CTAS serve an unattractive investment opportunity compared to its competitors.
CTAS Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 341.86 level, and in case of violation of this particular level, it will cause more drop to 334.83 level. On the upper level, 356.07 is still the key resistance. The stock may increase to the subsequent resistance at 352.48. The Relative Strength Index (RSI) pinned on the 14-day chart is 49.20, implying a neutral technical stance while the MACD stands at -0.14, meaning price will decrease in the next trading period. Percent R indicator moved to 38.63%, implying low price movement. Stochastic %K at 60.37% suggest selling the stock.
What is the short interest in Cintas Corporation?
Short interest in the Cintas Corporation stock has surged, increasing by 38480.0 shares to total 0.88 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 0.92 million, data from Yahoo Finance shows. The decrease of -4.36% suggests the stock saw some decreased bullish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 0.99% of the overall float for the stock.
Cintas Corporation’s Biggest Shareholders: Who Owns Cintas Corporation [CTAS]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 9,703,694 shares or roughly 9.28% of the outstanding CTAS shares. This means their shares have reduced by -146,625 from the 9,703,694 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, T. Rowe Price Associates, Inc. updated stake is worth $1,796,090,887. Details in the latest 13F filings reveal that BlackRock Fund Advisors disposed off their -0.22% stake valued at $1,540,853,315 while SSgA Funds Management, Inc. cut theirs at $1,391,229,024. During the last quarter, BlackRock Fund Advisors liquidated -9,550 of its shares in Cintas Corporation while SSgA Funds Management, Inc. sold -51,220 shares. The Fidelity Management & Research Co’s holdings currently number 2,713,410 shares at $946681614.9. According to the firm’s last 13F report, Brown Advisory LLC shares in the company at filing stood at 1,849,016 shares, roughly $656,955,385.
CTAS Earnings Forecast For The Current Quarter
Cintas Corporation [CTAS] is expected to report weak earnings results for the quarter ending on Feb 2021. Consensus estimates give the company expected revenues of $1.75B and an earnings per share of $2.14 for Feb 2021. Looking further ahead, the company is expected to report revenue of $1.8B at an EPS of $2.14 for May 2021. The estimates represent downside of 6.90% and 2.52% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
CTAS Earnings Estimates For The Current Year
For the financial year, Cintas Corporation [NASDAQ:CTAS] is expected to bring in revenue of $7.05B. The returns are nearly $-40.0 million lower than the company’s actual revenue recorded in the fiscal year 2020. In terms of EPS for the 2021, estimate put it at 9.66, higher than that of FY20 by $1.55. Estimates put this year’s earnings growth at 19.10%, 2.10% for the next, and at an annual 12.50% over the next 5-year period. As for sales, forecasts are for a decrease of -0.50% in the current fiscal year and a further 6.90% over the following year.