Connor Clark & Lunn Investment Management Ltd. Makes New Investment in Rollins, Inc. $ROL

Key Points

• Connor Clark & Lunn Investment Management acquired 51,322 Rollins shares worth approximately $2.14 million in the second quarter. Institutional investors collectively own 51.79% of the company.
• Analyst sentiment is mixed but leans toward a “Hold”, with a consensus price target of $48.71; several firms recently cut their targets, including UBS to $43 and Piper Sandler to $46.
• Rollins reported quarterly revenue of $1.08 billion and earnings of $0.32 per share, narrowly missing estimates. The company declared a quarterly dividend of $0.1825 per share, representing a 2.0% annualized yield.

Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Rollins, Inc. (NYSE:ROL - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund acquired 51,322 shares of the business services provider's stock, valued at approximately $2,142,000.

Other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. bought a new position in Rollins in the 2nd quarter valued at $1,204,334,000. Norges Bank purchased a new position in Rollins during the fourth quarter worth about $244,669,000. Pictet Asset Management Holding SA increased its stake in Rollins by 188.2% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,908,818 shares of the business services provider's stock worth $155,335,000 after acquiring an additional 1,899,515 shares during the last quarter. Bank of New York Mellon Corp purchased a new stake in shares of Rollins in the 2nd quarter valued at about $65,993,000. Finally, Danske Bank A S purchased a new stake in shares of Rollins in the 2nd quarter valued at about $61,792,000. Hedge funds and other institutional investors own 51.79% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently weighed in on ROL. UBS Group reaffirmed a "neutral" rating and issued a $43.00 target price (down from $50.00) on shares of Rollins in a research note on Friday, July 24th. Raymond James Financial set a $35.00 price target on shares of Rollins in a research note on Thursday, July 23rd. Zacks Research lowered shares of Rollins from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 28th. Piper Sandler lowered their price objective on shares of Rollins from $72.00 to $46.00 and set an "overweight" rating on the stock in a research report on Friday, July 24th. Finally, BNP Paribas Exane lowered their price objective on shares of 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 issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $48.71.

Rollins Stock Performance

NYSE:ROL opened at $36.43 on Friday. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.58 and a current ratio of 0.63. Rollins, Inc. has a fifty-two week low of $35.81 and a fifty-two week high of $66.14. The firm has a market cap of $17.53 billion, a PE ratio of 33.12, a price-to-earnings-growth ratio of 3.98 and a beta of 0.75. The business has a 50 day moving average price of $40.33 and a 200-day moving average price of $49.36.

Rollins (NYSE:ROL - Get Free Report) last announced its quarterly earnings results 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 for the quarter, compared to analysts' expectations of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The company's quarterly revenue was up 7.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.30 EPS. Equities research analysts predict that Rollins, Inc. will post 1.18 earnings per share for the current year.

Rollins Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be given a dividend of $0.1825 per share. This represents a $0.73 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Monday, August 10th. Rollins's payout ratio is presently 66.36%.

About Rollins

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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