Rentokil Initial (NYSE:RTO) Reaches New 1-Year Low - Here's Why

Key Points

• Rentokil Initial shares fell 3% to $23.17 intraday, setting a new 52-week low and trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, but the stock retains a “Moderate Buy” consensus rating with an average price target of $31.90, well above its current price.
• The company declared a $0.224 dividend payable September 22, while institutional investors own approximately 9.91% of its shares.

Rentokil Initial PLC (NYSE:RTO - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $23.17 and last traded at $23.1150, with a volume of 1889802 shares traded. The stock had previously closed at $23.83.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. The Goldman Sachs Group raised shares of Rentokil Initial from a "neutral" rating to a "buy" rating in a research report on Monday, July 6th. BNP Paribas Exane cut Rentokil Initial from an "outperform" rating to a "neutral" rating and set a $26.70 price objective for the company. in a research note on Friday, July 31st. Weiss Ratings lowered Rentokil Initial from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, August 20th. Wall Street Zen cut Rentokil Initial from a "buy" rating to a "hold" rating in a report on Monday, July 20th. Finally, Zacks Research lowered shares of Rentokil Initial from a "hold" rating to a "strong sell" rating in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Rentokil Initial currently has an average rating of "Moderate Buy" and a consensus target price of $31.90.

Rentokil Initial Stock Down 3.0%

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.07 and a current ratio of 1.16. The firm has a 50-day moving average price of $26.46 and a 200-day moving average price of $29.76.

Rentokil Initial Cuts Dividend

The company also recently declared a dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Friday, August 14th will be issued a $0.224 dividend. This represents a yield of 188.0%. The ex-dividend date of this dividend is Friday, August 14th.

Institutional Trading of Rentokil Initial

Hedge funds and other institutional investors have recently bought and sold shares of the company. Janus Henderson Group PLC grew its holdings in shares of Rentokil Initial by 3.0% during the 1st quarter. Janus Henderson Group PLC now owns 16,591,965 shares of the company's stock valued at $522,329,000 after purchasing an additional 490,885 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Rentokil Initial by 60.7% during the first quarter. Bank of America Corp DE now owns 6,650,998 shares of the company's stock valued at $209,373,000 after buying an additional 2,511,135 shares during the period. Schroder Investment Management Group lifted its position in shares of Rentokil Initial by 8.4% in the 4th quarter. Schroder Investment Management Group now owns 3,463,470 shares of the company's stock worth $103,558,000 after purchasing an additional 267,204 shares during the period. Snyder Capital Management L P lifted its holdings in Rentokil Initial by 16.5% in the fourth quarter. Snyder Capital Management L P now owns 1,733,447 shares of the company's stock worth $51,067,000 after buying an additional 244,976 shares during the period. Finally, Summitry LLC boosted its position in shares of Rentokil Initial by 1.7% during the fourth quarter. Summitry LLC now owns 1,475,957 shares of the company's stock valued at $43,482,000 after purchasing an additional 25,170 shares in the last quarter. Hedge funds and other institutional investors own 9.91% of the company's stock.

About Rentokil Initial

Rentokil Initial PLC is a global business services company specializing in pest control, hygiene and workwear services. Headquartered in Crawley, West Sussex, United Kingdom, the company delivers outsourced solutions designed to protect people, preserve assets and enhance workplaces for both commercial and residential customers.

Under the Rentokil Pest Control brand, the company offers services ranging from routine inspections and treatment of insects, rodents and birds to specialised programmes for food manufacturing and healthcare environments.

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