ABC Arbitrage SA Makes New Investment in Rentokil Initial PLC (NYSE:RTO)

Key Points

• ABC Arbitrage SA purchased 52,432 shares of Rentokil Initial PLC, valued at approximately $1.2 million, indicating increased investor interest in the company.
• Rentokil Initial has announced a semi-annual dividend of $0.2738 per share, slated for payment on September 23rd, which reflects a yield of 240.0%.
• Analyst ratings have shown mixed reactions, with Sanford C. Bernstein downgrading Rentokil to "underperform", while Deutsche Bank reissued a "buy" rating, highlighting differing outlooks on the stock's performance.

ABC Arbitrage SA purchased a new position in shares of Rentokil Initial PLC (NYSE:RTO - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 52,432 shares of the company's stock, valued at approximately $1,201,000.

Several other hedge funds have also added to or reduced their stakes in RTO. Envestnet Asset Management Inc. raised its holdings in Rentokil Initial by 23.8% in the 1st quarter. Envestnet Asset Management Inc. now owns 777,926 shares of the company's stock valued at $17,815,000 after acquiring an additional 149,599 shares in the last quarter. Norges Bank acquired a new position in Rentokil Initial in the 4th quarter valued at $1,332,000. Gates Capital Management Inc. raised its holdings in Rentokil Initial by 21.0% in the 4th quarter. Gates Capital Management Inc. now owns 6,258,013 shares of the company's stock valued at $158,453,000 after acquiring an additional 1,084,845 shares in the last quarter. W.G. Shaheen & Associates DBA Whitney & Co raised its holdings in Rentokil Initial by 5.2% in the 1st quarter. W.G. Shaheen & Associates DBA Whitney & Co now owns 228,697 shares of the company's stock valued at $5,237,000 after acquiring an additional 11,236 shares in the last quarter. Finally, Cetera Investment Advisers raised its holdings in Rentokil Initial by 277.4% in the 4th quarter. Cetera Investment Advisers now owns 32,661 shares of the company's stock valued at $827,000 after acquiring an additional 24,006 shares in the last quarter. 9.91% of the stock is owned by institutional investors and hedge funds.

Rentokil Initial Price Performance

Shares of Rentokil Initial stock traded up $0.18 during trading on Friday, reaching $25.25. 1,052,612 shares of the company's stock were exchanged, compared to its average volume of 870,814. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.72 and a current ratio of 0.81. Rentokil Initial PLC has a 1-year low of $19.60 and a 1-year high of $34.07. The company has a market cap of $12.76 billion, a P/E ratio of 16.72, a PEG ratio of 4.34 and a beta of 0.92. The firm's 50-day moving average price is $23.84 and its 200 day moving average price is $23.64.

Rentokil Initial Cuts Dividend

The firm also recently announced a semi-annual dividend, which will be paid on Tuesday, September 23rd. Shareholders of record on Friday, August 15th will be paid a dividend of $0.2738 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a yield of 240.0%. Rentokil Initial's payout ratio is presently 45.70%.

Analyst Ratings Changes

Several brokerages have weighed in on RTO. Sanford C. Bernstein cut Rentokil Initial from a "market perform" rating to an "underperform" rating in a report on Thursday, May 15th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Rentokil Initial in a report on Monday, July 21st.

About Rentokil Initial

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management for commercial customers.