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

Key Points

• Morgan Stanley cut Rollins’ price target from $60 to $45 but maintained an “overweight” rating, implying nearly 49% upside from the stock’s reported $30.24 price.
• Analyst sentiment is broadly cautious: Rollins has a consensus “Hold” rating and an average price target of $45.94, with 11 holds, three sells, four buys, and one strong buy.
• Rollins’ latest quarterly results fell slightly short of expectations, with EPS of $0.32 versus $0.34 expected and revenue of $1.08 billion versus $1.09 billion forecast, despite 7.9% year-over-year revenue growth.

Rollins (NYSE:ROL - Get Free Report) had its target price dropped by analysts at Morgan Stanley from $60.00 to $45.00 in a research report issued on Tuesday, Benzinga reports. The brokerage currently has an "overweight" rating on the business services provider's stock. Morgan Stanley's target price indicates a potential upside of 48.79% from the company's current price.

Several other equities analysts have also issued reports on the company. Weiss Ratings lowered Rollins from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Citigroup began coverage on Rollins in a report on Wednesday, July 15th. They issued a "neutral" rating and a $46.00 target price for the company. Bank of America reissued a "neutral" rating and issued a $35.00 target price (down from $55.00) on shares of Rollins in a research report on Thursday, July 23rd. Argus downgraded Rollins from a "buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Finally, Canaccord Genuity Group set a $45.00 price target on Rollins and gave the stock a "hold" rating in a research report on Thursday, July 23rd. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Rollins presently has a consensus rating of "Hold" and an average target price of $45.94.

Rollins Stock Down 1.1%

Shares of Rollins stock traded down $0.35 during trading hours on Tuesday, hitting $30.24. The company had a trading volume of 5,217,481 shares, compared to its average volume of 4,252,602. The company's 50-day moving average is $36.11 and its two-hundred day moving average is $45.40. Rollins has a twelve month low of $29.74 and a twelve month high of $66.14. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58. The company has a market cap of $14.55 billion, a P/E ratio of 27.52, a price-to-earnings-growth ratio of 3.27 and a beta of 0.74.

Rollins (NYSE:ROL - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.34 by ($0.02). Rollins had a net margin of 13.55% and a return on equity of 38.81%. The company had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.09 billion. During the same period last year, the business earned $0.30 earnings per share. The company's quarterly revenue was up 7.9% on a year-over-year basis. Analysts anticipate that Rollins will post 1.17 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of ROL. Envestnet Portfolio Solutions Inc. lifted its holdings 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 worth $464,000 after purchasing an additional 1,692 shares during the period. State Street Corp increased its stake in Rollins by 3.7% in the 2nd 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 stake in Rollins by 580.4% in the 2nd 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. WINTON GROUP Ltd purchased a new position in Rollins during the 2nd quarter worth $3,619,000. Finally, Engineers Gate Manager LP purchased a new position in Rollins during the 2nd quarter worth $14,908,000. Institutional investors and hedge funds own 51.79% of the company's stock.

Rollins Company Profile

Rollins, Inc is a global provider of pest and termite control services for residential and commercial customers. The company helps protect homes, businesses, and other properties from insects, rodents, termites, wildlife, and other pests through inspection, prevention, treatment, and ongoing monitoring programs.

Rollins operates through a portfolio of recognized pest control brands, including Orkin, Terminix, HomeTeam Pest Defense, Western Exterminator, and Critter Control. Its services include general pest management, termite protection, mosquito and bed bug control, wildlife management, and specialized commercial pest control programs.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins serves customers across the United States and internationally.

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