Cintas Corporation (NASDAQ:CTAS), a leader in the provision of specialized services to businesses, has announced a four-for-one forward stock split of its common stock. The change took effect on Wednesday, September 11, 2024, after the close of business, as disclosed in a recent SEC filing.
The company's Restated Articles of Incorporation were amended to facilitate the stock split, which was approved by the Board of Directors without the need for shareholder approval, in accordance with the Washington Business Corporation Act. Following the split, each share of the company's issued and outstanding common stock has been converted into four shares, while the par value per share remains unchanged.
The adjustment has significantly increased the number of Cintas' outstanding shares from approximately 100.8 million to over 403.2 million. Additionally, the authorized shares of common stock have quadrupled from 425 million to 1.7 billion.
This corporate action aims to make the company's stock more accessible to a broader range of investors by lowering the price per share. Cintas' stock will continue to trade on the NASDAQ Global Select Market under the ticker symbol CTAS.
The implementation of the stock split does not result in the issuance of fractional shares. Instead, shareholders will receive whole shares, which will adjust their holdings accordingly.
The SEC filing, which includes the full text of the amendment to the Restated Articles of Incorporation, provides a comprehensive reference to these changes. As per the filing, the information is based on a press release statement.
InvestingPro Insights
Following the announcement of Cintas Corporation's (NASDAQ:CTAS) four-for-one forward stock split, investors may find additional insights from InvestingPro valuable. Analysts have taken a positive stance on the company's earnings, with 8 analysts revising their earnings upwards for the upcoming period, signaling confidence in the company's financial performance. Moreover, Cintas has been recognized for its impressive gross profit margins, which have reached 48.83% in the last twelve months as of Q4 2024, reflecting efficient operations and strong pricing power.
Despite the stock split aimed at making shares more accessible, Cintas is still trading at a high earnings multiple, with a P/E ratio of 53.2, which indicates a premium valuation in the market. However, investors appreciate the company's consistent performance, as evidenced by the fact that Cintas has maintained dividend payments for 32 consecutive years, with a current dividend yield of 3.04% and a substantial dividend growth of 35.65% in the last twelve months as of Q4 2024.
For those interested in a deeper analysis, InvestingPro offers even more insights, including additional tips on Cintas Corporation, which can be found at https://www.investing.com/pro/CTAS.
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