Argus Downgrades Rollins (NYSE:ROL) to Hold

Key Points

• Argus downgraded Rollins from “buy” to “hold,” adding to a generally cautious analyst outlook. MarketBeat data shows a consensus “hold” rating and an average price target of $48.71.
• Rollins shares opened at $37.79, near their 52-week low of $36.59 and down from both their 50-day and 200-day moving averages. The stock trades at a P/E ratio of 34.36.
• The company’s latest quarter fell slightly short of expectations, with earnings per share of $0.32 versus a $0.34 estimate and revenue of $1.08 billion versus $1.09 billion expected, although revenue increased 7.9% year over year.

Rollins (NYSE:ROL - Get Free Report) was downgraded by analysts at Argus from a "buy" rating to a "hold" rating in a research report issued on Wednesday, Marketbeat Ratings reports.

ROL has been the subject of several other research reports. Piper Sandler reduced their target price on shares of Rollins from $72.00 to $46.00 and set an "overweight" rating for the company in a research note on Friday, July 24th. Bank of America reaffirmed a "neutral" rating and issued a $35.00 price objective (down from $55.00) on shares of Rollins in a report on Thursday, July 23rd. Zacks Research lowered shares of Rollins from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 28th. Weiss Ratings cut shares of Rollins from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. Finally, BNP Paribas Exane dropped their target price on Rollins from $63.00 to $44.00 and set a "hold" rating on the stock in a research report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $48.71.

Rollins Stock Down 1.0%

ROL stock opened at $37.79 on Wednesday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.58 and a current ratio of 0.63. The company has a market capitalization of $18.18 billion, a price-to-earnings ratio of 34.36, a PEG ratio of 4.14 and a beta of 0.75. Rollins has a fifty-two week low of $36.59 and a fifty-two week high of $66.14. The stock has a fifty day moving average of $43.99 and a 200-day moving average of $52.63.

Rollins (NYSE:ROL - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.02). The firm had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%.The company's revenue was up 7.9% compared to the same quarter last year. During the same period last year, the business posted $0.30 EPS. As a group, equities research analysts predict that Rollins will post 1.2 earnings per share for the current year.

Hedge Funds Weigh In On Rollins

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROL. National Pension Service grew its stake in Rollins by 138.3% in the 4th quarter. National Pension Service now owns 51,277 shares of the business services provider's stock worth $3,078,000 after buying an additional 29,758 shares in the last quarter. USS Investment Management Ltd increased its holdings in shares of Rollins by 55.9% in the 1st quarter. USS Investment Management Ltd now owns 3,131,337 shares of the business services provider's stock worth $167,260,000 after buying an additional 1,123,237 shares during the last quarter. Public Employees Retirement System of Ohio raised its position in shares of Rollins by 16.8% during the 1st quarter. Public Employees Retirement System of Ohio now owns 216,278 shares of the business services provider's stock valued at $11,551,000 after buying an additional 31,173 shares in the last quarter. Bessemer Group Inc. raised its position in shares of Rollins by 73.3% during the 1st quarter. Bessemer Group Inc. now owns 1,879,120 shares of the business services provider's stock valued at $100,365,000 after buying an additional 794,722 shares in the last quarter. Finally, Asset Management One Co. Ltd. lifted its holdings in shares of Rollins by 22.1% during the 4th quarter. Asset Management One Co. Ltd. now owns 273,680 shares of the business services provider's stock worth $16,627,000 after acquiring an additional 49,612 shares during the last quarter. 51.79% of the stock is currently owned by hedge funds and other institutional investors.

Rollins Company Profile

Rollins, Inc NYSE: ROL is a provider of pest and termite control services operating through a network of subsidiaries and franchises. Headquartered in Atlanta, Georgia, the company offers a broad range of pest management solutions for both residential and commercial customers, positioning itself as a specialist in protecting property and public health from pests and vectors.

Its service offerings include general pest control, termite inspection and treatment, bed bug remediation, mosquito and vector control, wildlife exclusion, and related specialty services.

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