Loop Capital Initiates Coverage on Rollins (NYSE:ROL)

Key Points

• Loop Capital initiated coverage of Rollins (NYSE:ROL) with a Hold rating and a $56 price target, implying roughly a 3.2% upside from the prior close.
• Analyst sentiment is mildly positive overall — MarketBeat shows a consensus of Moderate Buy with an average target of $64.86, while individual price targets span about $52 to $70.
• Recent quarter: revenue rose 9.7% year-over-year but EPS missed by $0.02; insiders (including the chairman and CEO) sold shares last quarter and institutional investors own about 51.8% of the company.

Research analysts at Loop Capital began coverage on shares of Rollins (NYSE:ROL - Get Free Report) in a report released on Monday. The brokerage set a "hold" rating and a $56.00 price target on the business services provider's stock. Loop Capital's target price would suggest a potential upside of 3.22% from the stock's previous close.

Other equities analysts have also issued research reports about the stock. Morgan Stanley set a $70.00 price objective on shares of Rollins in a research note on Friday, February 13th. Wells Fargo & Company set a $56.00 price objective on shares of Rollins and gave the company an "equal weight" rating in a research note on Thursday, February 12th. UBS Group set a $58.00 price objective on shares of Rollins and gave the stock a "neutral" rating in a report on Friday. Bank of America assumed coverage on shares of Rollins in a report on Tuesday, February 17th. They set a "buy" rating and a $67.00 price objective on the stock. Finally, Canaccord Genuity Group set a $52.00 price target on shares of Rollins and gave the company a "hold" rating in a research report on Friday, February 13th. Eleven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $64.86.

Rollins Price Performance

Shares of NYSE:ROL opened at $54.25 on Monday. The firm's 50 day moving average is $57.72 and its two-hundred day moving average is $58.86. Rollins has a 52 week low of $51.77 and a 52 week high of $66.14. The firm has a market capitalization of $26.15 billion, a P/E ratio of 49.77, a PEG ratio of 3.34 and a beta of 0.84. The company has a current ratio of 0.60, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35.

Rollins (NYSE:ROL - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The business services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.27 by ($0.02). Rollins had a net margin of 14.00% and a return on equity of 38.16%. The firm had revenue of $912.91 million during the quarter, compared to analyst estimates of $925.08 million. During the same quarter in the previous year, the business posted $0.22 EPS. Rollins's revenue for the quarter was up 9.7% compared to the same quarter last year. Analysts anticipate that Rollins will post 1.09 earnings per share for the current year.

Insider Buying and Selling

In related news, Chairman John F. Wilson sold 5,344 shares of the firm's stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $62.83, for a total transaction of $335,763.52. Following the sale, the chairman directly owned 594,705 shares in the company, valued at $37,365,315.15. This trade represents a 0.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Jerry Jr. Gahlhoff sold 1,307 shares of the firm's stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $62.83, for a total transaction of $82,118.81. Following the sale, the chief executive officer owned 327,079 shares in the company, valued at approximately $20,550,373.57. The trade was a 0.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 67,039 shares of company stock valued at $4,177,480. 5.77% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Rockefeller Capital Management L.P. grew its position in shares of Rollins by 108.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 9,905 shares of the business services provider's stock valued at $595,000 after acquiring an additional 5,156 shares during the period. Larry Mathis Financial Planning LLC bought a new position in shares of Rollins in the 4th quarter valued at about $245,000. Montanaro Asset Management Ltd grew its position in shares of Rollins by 2.7% in the 4th quarter. Montanaro Asset Management Ltd now owns 305,000 shares of the business services provider's stock valued at $18,306,000 after acquiring an additional 8,000 shares during the period. Corient Private Wealth LLC grew its position in shares of Rollins by 0.7% in the 4th quarter. Corient Private Wealth LLC now owns 495,487 shares of the business services provider's stock valued at $29,739,000 after acquiring an additional 3,296 shares during the period. Finally, Bayban bought a new position in shares of Rollins in the 4th quarter valued at about $49,000. Institutional investors own 51.79% of 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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