Wells Fargo has recently initiated Cintas Corp (CTAS) stock to Underweight rating, as announced on August 13, 2024, according to Finviz. Earlier, on August 9, 2024, Redburn Atlantic had initiated the stock to Neutral, setting a price target of $670. Robert W. Baird also reduced Neutral rating with a price target of $775. Additionally, RBC Capital Mkts reduced Sector Perform rating on July 15, 2024, with a target price of $725. Citigroup analysts, in their report published on May 24, 2024, also reduced Sell rating and set a price target of $570 for Cintas Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Cintas Corp (CTAS) Stock Trading Recap
On Friday, Cintas Corp (CTAS) stock saw a modest uptick, ending the day at $227.34 which represents a slight increase of $3.29 or 1.47% from the prior close of $224.05. The stock opened at $224.8 and touched a low of $224.33 during the day, reaching a high of $226.61. The volume of shares traded was 0.98 million falling short of the average volume of 1.36 million.
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CTAS Stock Performance and Moving Averages
In recent trading, Cintas Corp (CTAS) stock price has shown some volatility, fluctuating 2.64% over the last five trades and 9.38% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 34.13%, and it has gained 12.95% in the previous three months. Currently, CTAS is trading at 3.64%, 7.04%, and 22.78% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CTAS, a Industrials sector stock, is trading -0.34% below its 52-week high but remains 66.10% above its 52-week low. The Average True Range (ATR) (14 days) of 3.51 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Cintas Corp’s Profitability and Valuation Ratios
Cintas Corp’s profitability metrics reveal financial health. The company currently boasts an operating margin of 21.82% and a profit margin of 16.73%, with a gross margin of 34.13%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Cintas Corp’s market capitalization stands at $91.69 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 57.43, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 48.51. Additionally, the Price-to-Sales Ratio is 9.4, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 22.8, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 15.17% of Cintas Corp (CTAS)’s shares, while financial institutions hold 64.02%.
Notable insider trades include Schneider Todd M., CEO and Director at Cintas Corp (CTAS), who sold 6896 shares on Jul 29 ’24, at $764.05 each, totaling $5.27 million. On Jul 24 ’24, Adolph Gerald S, Director, sold 1100 shares for $765.72 each, amounting to $0.84 million. Additionally, on May 07 ’24, Rozakis Jim sold 1318 shares at $693.71 each, generating $0.91 million.
