Citigroup Issues Pessimistic Forecast for Rollins (NYSE:ROL) Stock Price

Key Points

• Citigroup cut Rollins’ price target from $46 to $32 while maintaining a neutral rating, implying 5.61% downside from the prior close.
• Rollins shares rose 3.9% to $33.90, despite the company recently missing quarterly EPS and revenue estimates. Analysts collectively maintain a “Hold” consensus with an average target price of $44.
• Institutional investors own 51.79% of Rollins, with several major funds increasing their stakes during the second quarter.

Rollins (NYSE:ROL - Get Free Report) had its target price cut by research analysts at Citigroup from $46.00 to $32.00 in a report issued on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the business services provider's stock. Citigroup's target price points to a potential downside of 5.61% from the company's previous close.

Other equities research analysts have also recently issued research reports about the company. Barclays set a $45.00 price objective on Rollins and gave the company an "overweight" rating in a research note on Friday, July 24th. Royal Bank Of Canada lowered Rollins from an "outperform" rating to a "sector perform" rating and lowered their target price for the stock from $52.00 to $40.00 in a research report on Thursday, July 23rd. Bank of America reaffirmed a "neutral" rating and set a $35.00 target price (down from $55.00) on shares of Rollins in a research report on Thursday, July 23rd. UBS Group set a $36.00 target price on Rollins and gave the stock a "neutral" rating in a report on Wednesday. Finally, JPMorgan Chase & Co. reduced their price target on shares of Rollins from $40.00 to $35.00 and set a "neutral" rating for the company in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $44.00.

Rollins Stock Up 3.9%

ROL traded up $1.27 during midday trading on Thursday, hitting $33.90. The company had a trading volume of 4,739,851 shares, compared to its average volume of 4,486,993. The stock's 50 day moving average price is $34.13 and its 200 day moving average price is $43.44. Rollins has a 52 week low of $29.28 and a 52 week high of $66.14. The company has a market capitalization of $16.31 billion, a price-to-earnings ratio of 30.81, a PEG ratio of 3.58 and a beta of 0.73. The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34.

Rollins (NYSE:ROL - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.34 by ($0.02). The company had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%. Rollins's revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period last year, the company earned $0.30 EPS. On average, research analysts anticipate that Rollins will post 1.16 earnings per share for the current fiscal year.

Institutional Trading of Rollins

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wealth Enhancement Trust Services Inc. grew its holdings in Rollins by 108.9% during the 3rd quarter. Wealth Enhancement Trust Services Inc. now owns 36,997 shares of the business services provider's stock valued at $1,114,000 after buying an additional 19,287 shares in the last quarter. Envestnet Portfolio Solutions Inc. increased its position in shares of Rollins by 17.9% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 11,125 shares of the business services provider's stock valued at $464,000 after buying an additional 1,692 shares during the period. State Street Corp increased its position in shares of Rollins by 3.7% during the second quarter. State Street Corp now owns 13,561,228 shares of the business services provider's stock valued at $566,046,000 after buying an additional 488,046 shares during the period. The Manufacturers Life Insurance Company increased its position in shares of Rollins by 580.4% during the second quarter. The Manufacturers Life Insurance Company now owns 1,090,688 shares of the business services provider's stock valued at $45,525,000 after buying an additional 930,397 shares during the period. Finally, WINTON GROUP Ltd purchased a new stake in shares of Rollins in the second quarter worth about $3,619,000. 51.79% of the stock is owned by institutional investors.

About Rollins

Rollins, Inc is a global provider of pest and wildlife control services. The company serves residential and commercial customers with solutions for common pests, including insects, rodents, termites, bedbugs and mosquitoes. Its services also include wildlife management, sanitation and related specialty treatments.

Rollins operates through a portfolio of well-known brands, including Orkin, Terminix, HomeTeam Pest Defense and Critter Control. These brands provide recurring pest prevention, inspections, extermination, termite control and other property protection services to homeowners, businesses and institutions.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins has expanded its operations across the United States and into international markets.

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