Gates Capital Management Inc. Acquires 357,292 Shares of Rentokil Initial PLC $RTO

Key Points

• Gates Capital Management Inc. increased its stake in Rentokil Initial PLC by 5.7%, now holding 6,615,305 shares valued at approximately $151.49 million.
• Rentokil Initial recently announced a semi-annual dividend of $0.2738, representing a dividend yield of 240.0%.
• Research analysts have given Rentokil Initial an average rating of "Moderate Buy," with ratings ranging from Strong Buy to Sell from various brokerages.

Gates Capital Management Inc. raised its position in Rentokil Initial PLC (NYSE:RTO - Free Report) by 5.7% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 6,615,305 shares of the company's stock after acquiring an additional 357,292 shares during the quarter. Rentokil Initial makes up about 3.0% of Gates Capital Management Inc.'s holdings, making the stock its 5th biggest holding. Gates Capital Management Inc. owned about 1.31% of Rentokil Initial worth $151,490,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. Sunriver Management LLC purchased a new position in shares of Rentokil Initial in the 1st quarter valued at $21,864,000. Alberta Investment Management Corp grew its stake in Rentokil Initial by 36.8% during the 1st quarter. Alberta Investment Management Corp now owns 1,794,900 shares of the company's stock worth $41,103,000 after buying an additional 482,429 shares during the last quarter. Voss Capital LP lifted its stake in Rentokil Initial by 12.4% in the first quarter. Voss Capital LP now owns 3,471,946 shares of the company's stock valued at $79,508,000 after buying an additional 381,659 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of Rentokil Initial by 94.8% in the fourth quarter. Northern Trust Corp now owns 462,657 shares of the company's stock valued at $11,714,000 after acquiring an additional 225,214 shares during the period. Finally, BNP Paribas Financial Markets acquired a new position in shares of Rentokil Initial in the 4th quarter valued at $5,697,000. 9.91% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

RTO has been the subject of a number of research reports. Sanford C. Bernstein cut shares of Rentokil Initial from a "market perform" rating to an "underperform" rating in a report on Thursday, May 15th. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Rentokil Initial in a research note on Monday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy".

Rentokil Initial Price Performance

NYSE:RTO traded up $0.71 during trading hours on Thursday, hitting $25.17. The company's stock had a trading volume of 728,372 shares, compared to its average volume of 810,166. The business's 50-day moving average is $24.14 and its two-hundred day moving average is $23.58. The company has a market capitalization of $12.71 billion, a PE ratio of 16.67, a PEG ratio of 4.30 and a beta of 0.94. 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 52-week low of $19.60 and a 52-week high of $31.74.

Rentokil Initial Cuts Dividend

The business also recently declared a semi-annual dividend, which will be paid on Tuesday, September 23rd. Stockholders of record on Friday, August 15th will be given a dividend of $0.2738 per share. This represents a dividend yield of 240.0%. The ex-dividend date is Friday, August 15th. Rentokil Initial's dividend payout ratio (DPR) is presently 29.80%.

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.