Rollins, Inc. $ROL Shares Acquired by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia doubled its Rollins position in the first quarter, acquiring 52,815 additional shares and holding 105,197 shares valued at approximately $5.6 million. Institutional investors collectively own 51.79% of the company.
• Rollins reported quarterly EPS of $0.32, below the $0.34 consensus estimate, while revenue rose 7.9% year over year to $1.08 billion. The stock opened at $39.03, near its one-year low of $36.59.
• The company declared a quarterly dividend of $0.1825, equivalent to $0.73 annually and a 1.9% yield. Analysts have generally taken a cautious stance, with an average rating of Hold and an average price target of $48.71 after several recent target reductions.

Bank of Nova Scotia raised its position in shares of Rollins, Inc. (NYSE:ROL - Free Report) by 100.8% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 105,197 shares of the business services provider's stock after purchasing an additional 52,815 shares during the period. Bank of Nova Scotia's holdings in Rollins were worth $5,619,000 at the end of the most recent quarter.

Several other large investors also recently made changes to their positions in the company. DV Equities LLC bought a new position in Rollins in the 4th quarter valued at about $25,000. Cornerstone Planning Group LLC boosted its holdings in shares of Rollins by 528.4% in the fourth quarter. Cornerstone Planning Group LLC now owns 421 shares of the business services provider's stock valued at $26,000 after acquiring an additional 354 shares in the last quarter. Torren Management LLC bought a new position in shares of Rollins in the fourth quarter valued at approximately $36,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Rollins during the fourth quarter valued at approximately $43,000. Finally, Quarry LP raised its holdings in Rollins by 155.2% during the fourth quarter. Quarry LP now owns 740 shares of the business services provider's stock worth $44,000 after purchasing an additional 450 shares in the last quarter. Institutional investors and hedge funds own 51.79% of the company's stock.

Rollins Price Performance

ROL opened at $39.03 on Tuesday. The stock has a fifty day moving average price of $45.79 and a 200 day moving average price of $53.58. The company has a current ratio of 0.63, a quick ratio of 0.58 and a debt-to-equity ratio of 0.34. Rollins, Inc. has a 1 year low of $36.59 and a 1 year high of $66.14. The stock has a market cap of $18.78 billion, a price-to-earnings ratio of 35.48, a PEG ratio of 4.14 and a beta of 0.75.

Rollins (NYSE:ROL - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.02). Rollins had a return on equity of 38.81% and a net margin of 13.55%.The business had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.09 billion. During the same quarter last year, the company earned $0.30 EPS. The business's revenue for the quarter was up 7.9% compared to the same quarter last year. Analysts forecast that Rollins, Inc. will post 1.21 EPS for the current fiscal year.

Rollins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $0.1825 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $0.73 dividend on an annualized basis and a yield of 1.9%. Rollins's dividend payout ratio (DPR) is 66.36%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. UBS Group reissued a "neutral" rating and issued a $43.00 price objective (down from $50.00) on shares of Rollins in a research note on Friday. Piper Sandler dropped their price target on shares of Rollins from $72.00 to $46.00 and set an "overweight" rating on the stock in a research report on Friday. Bank of America reissued a "neutral" rating and issued a $35.00 price target (down from $55.00) on shares of Rollins in a report on Thursday, July 23rd. Sanford C. Bernstein downgraded shares of Rollins from an "outperform" rating to a "market perform" rating and dropped their target price for the stock from $70.00 to $52.00 in a report on Friday, May 29th. Finally, Canaccord Genuity Group set a $45.00 target price on shares of Rollins and gave the company a "hold" rating in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $48.71.

Rollins News Summary

Here are the key news stories impacting Rollins this week:

• Negative Sentiment: Holzer & Holzer announced an investigation into whether Rollins complied with federal securities laws after the company reported that second-quarter operating margin fell 110 basis points year over year. Management attributed the shortfall to declining lead volumes from search, digital media and inbound-call channels serving parts of its residential pest-control business. The announcement adds headline and potential litigation risk. Holzer & Holzer Rollins investigation
• Negative Sentiment: JPMorgan Chase assigned Rollins an Underweight rating, signaling that analysts expect the shares to underperform. The call reinforces concerns about slowing organic growth and the company’s premium valuation. JPMorgan Rollins Underweight rating
• Negative Sentiment: Piper Sandler lowered its price target to $46. While the target remains above the reference share price, the reduction reflects diminished expectations after Rollins missed quarterly earnings estimates and reported softer residential demand. Piper Sandler lowers Rollins price target
• Neutral Sentiment: Several other listed stories concern WWE performer Seth Rollins, while another discusses USDA Secretary Brooke Rollins and food prices. These are unrelated to Rollins, Inc. NYSE: ROL and should not affect the company’s stock.

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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