Rentokil Initial (NYSE:RTO) Stock Sees Unusually High Call Option Buying

Key Points

• Unusual options activity: Traders purchased 6,014 Rentokil Initial call options, 2,296% above the average volume of 251 contracts.
• Weak stock performance: Shares slipped to $21.04, well below their 50-day and 200-day moving averages, with a 52-week range of $19.50 to $34.67.
• Analyst sentiment is mixed: Rentokil Initial has an average “Hold” rating and a consensus price target of $31.90, while institutional ownership stands at 9.91%.

Rentokil Initial PLC (NYSE:RTO - Get Free Report) was the recipient of some unusual options trading on Monday. Traders acquired 6,014 call options on the stock. This is an increase of 2,296% compared to the average volume of 251 call options.

Rentokil Initial Stock Performance

NYSE RTO traded down $0.05 on Monday, reaching $21.04. The stock had a trading volume of 1,175,727 shares, compared to its average volume of 1,397,148. The business has a 50 day moving average price of $22.19 and a 200 day moving average price of $27.66. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.98 and a current ratio of 1.06. Rentokil Initial has a 1 year low of $19.50 and a 1 year high of $34.67.

Rentokil Initial Cuts Dividend

The firm also recently disclosed a dividend, which was paid on Tuesday, September 22nd. Investors of record on Friday, August 14th were given a dividend of $0.2240 per share. The ex-dividend date of this dividend was Friday, August 14th. This is a drop from Rentokil Initial's previous dividend of $0.4120. This represents a yield of 188.0%.

Analyst Ratings Changes

A number of equities research analysts have commented on RTO shares. Morgan Stanley lowered Rentokil Initial from an "overweight" rating to an "equal weight" rating in a research report on Tuesday, September 29th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Rentokil Initial in a research note on Monday, October 5th. Stifel Nicolaus upgraded Rentokil Initial from a "hold" rating to a "buy" rating in a report on Monday, October 5th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating on shares of Rentokil Initial in a research report on Monday, August 3rd. Finally, Wall Street Zen cut shares of Rentokil Initial from a "buy" rating to a "hold" rating in a report on Monday, July 20th. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Rentokil Initial presently has an average rating of "Hold" and an average target price of $31.90.

Institutional Trading of Rentokil Initial

A number of institutional investors have recently added to or reduced their stakes in RTO. Vontobel Holding Ltd. bought a new stake in shares of Rentokil Initial during the 3rd quarter worth $346,000. Diversified Management Inc. bought a new position in Rentokil Initial in the 3rd quarter worth $289,000. Integrated Wealth Concepts LLC acquired a new position in Rentokil Initial during the 2nd quarter worth $57,000. NewEdge Advisors LLC lifted its position in Rentokil Initial by 332.7% during the 2nd quarter. NewEdge Advisors LLC now owns 39,213 shares of the company's stock worth $1,122,000 after acquiring an additional 30,151 shares during the last quarter. Finally, Continuum Advisory LLC bought a new stake in Rentokil Initial during the second quarter valued at about $42,000. 9.91% of the stock is currently owned by institutional investors and hedge funds.

Rentokil Initial Company Profile

Rentokil Initial plc NYSE: RTO is a business services company headquartered in the United Kingdom. It provides pest control, hygiene, and workplace services to commercial, public-sector, and residential customers. Its offerings are designed to help organizations manage pests, maintain sanitary environments, and support health, safety, and workplace standards.

The company's pest control services address insects, rodents, and other pests, while its hygiene operations provide washroom services, sanitary products, air care, floor-care solutions, and related workplace services.

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