Royal Bank of Canada Raises Stock Position in Rollins, Inc. $ROL

Key Points

• Royal Bank of Canada increased its Rollins stake by 16.6% in the first quarter, adding 181,460 shares to own 1.27 million shares valued at approximately $68 million. Institutional investors collectively own 51.79% of the company.
• Rollins reported quarterly revenue of $1.08 billion, up 7.9% year over year, but earnings of $0.32 per share missed analysts’ $0.34 estimate. The stock opened at $38.09, near its 52-week low, and has declined 0.7%.
• The company declared a quarterly dividend of $0.1825, equivalent to an annualized $0.73 payout and a 1.9% yield. Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $48.71, while some firms recently downgraded the stock.

Royal Bank of Canada grew its stake in Rollins, Inc. (NYSE:ROL - Free Report) by 16.6% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,272,753 shares of the business services provider's stock after buying an additional 181,460 shares during the period. Royal Bank of Canada owned 0.26% of Rollins worth $67,976,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. LRI Investments LLC lifted its position in Rollins by 8.7% in the fourth quarter. LRI Investments LLC now owns 2,293 shares of the business services provider's stock valued at $138,000 after acquiring an additional 183 shares during the last quarter. Sequoia Financial Advisors LLC boosted its stake in Rollins by 1.1% in the first quarter. Sequoia Financial Advisors LLC now owns 16,365 shares of the business services provider's stock valued at $874,000 after acquiring an additional 183 shares in the last quarter. IFM Investors Pty Ltd boosted its stake in Rollins by 0.3% in the first quarter. IFM Investors Pty Ltd now owns 57,895 shares of the business services provider's stock valued at $3,092,000 after acquiring an additional 185 shares in the last quarter. New Mexico Educational Retirement Board grew its holdings in shares of Rollins by 1.6% during the fourth quarter. New Mexico Educational Retirement Board now owns 12,875 shares of the business services provider's stock worth $773,000 after purchasing an additional 200 shares during the last quarter. Finally, Inspire Investing LLC grew its holdings in shares of Rollins by 3.9% during the fourth quarter. Inspire Investing LLC now owns 5,457 shares of the business services provider's stock worth $328,000 after purchasing an additional 203 shares during the last quarter. 51.79% of the stock is owned by hedge funds and other institutional investors.

Rollins Trading Down 0.7%

Shares of Rollins stock opened at $38.09 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. The company has a market capitalization of $18.33 billion, a P/E ratio of 34.62, a PEG ratio of 4.11 and a beta of 0.75. Rollins, Inc. has a 1 year low of $36.59 and a 1 year high of $66.14. The company's fifty day moving average is $44.61 and its two-hundred day moving average is $53.02.

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

Rollins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a $0.1825 dividend. This represents a $0.73 annualized dividend and a yield of 1.9%. The ex-dividend date is Monday, August 10th. Rollins's payout ratio is 66.36%.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on ROL shares. Wells Fargo & Company downgraded Rollins from an "overweight" rating to an "underweight" rating and reduced their target price for the company from $46.00 to $32.00 in a report on Friday, July 24th. Piper Sandler dropped their price target on Rollins from $72.00 to $46.00 and set an "overweight" rating on the stock in a research note on Friday, July 24th. Loop Capital assumed coverage on Rollins in a research note on Monday, April 13th. They set a "hold" rating and a $56.00 price target on the stock. Raymond James Financial set a $35.00 price target on Rollins in a research report on Thursday, July 23rd. Finally, Zacks Research cut Rollins from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $48.71.

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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