Executive Chairman Scott D. Farmer disposed of 15,923 shares of Cintas Corporation (NASDAQ:CTAS) at $202.71 per share on August 10, according to a recent SEC Form 4 filing.
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Transaction summary
Transaction value based on SEC Form 4 weighted average sale price ($202.71); post-transaction value based on the August 10 market close ($202.71).
Key questions
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What was the specific nature of this share disposition?
The sale was non-discretionary, executed to cover tax obligations associated with the lapse of restrictions on equity awards, and does not reflect the executive’s view on the company stock. -
How is the executive’s remaining equity position structured?
Scott D. Farmer maintains a primary interest through indirect holdings, including 33.5 million shares held by a limited liability limited partnership and 22.1 million shares held through various limited liability companies. -
Which other entities contribute to the indirect ownership total?
The reporting person also holds shares through a limited partnership, an Employee Stock Ownership Plan, a spouse, and trusts established for the benefit of himself and his family. -
What is the company’s current market valuation context?
The transaction occurred with shares priced at $202.71, as the stock has generated a return of -10% over the one-year period ending on the August 10 transaction date.
Company Overview
Company Snapshot
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Cintas Corporation provides professional uniform rental and maintenance services, first aid and safety solutions, and facility services, generating revenue primarily through recurring service contracts across the United States, Canada, and Latin America.
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The company operates a subscription-based business model in which customers pay recurring fees for uniform rental, cleaning, and maintenance services, supplemented by sales of first-aid and safety products and facility services.
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Cintas serves a diverse customer base, including manufacturing facilities, healthcare institutions, hospitality businesses, and other commercial enterprises requiring professional workwear and safety solutions.
Cintas Corporation is a leading specialty business services provider with a market capitalization of $82.1 billion and TTM revenues of $11.3 billion, demonstrating substantial scale and market presence. The company’s diversified service portfolio and recurring revenue model provide stable cash flows and competitive advantages through high customer switching costs and operational efficiency. With 48,100 employees and established operations across North America and Latin America, Cintas maintains a strong market position in the professional services sector.
