Rollins (NYSE:ROL) Hits New 1-Year Low - Time to Sell?

Key Points

• Rollins shares hit a new 52-week low, trading near $32.19 and well below their 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with recent rating and price-target cuts; the consensus remains “Hold” with an average target of $48.71.
• The company reported quarterly EPS and revenue slightly below estimates, though revenue rose 7.9% year over year. Rollins also maintains a $0.1825 quarterly dividend, equal to a 2.3% yield.

Rollins, Inc. (NYSE:ROL - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $32.42 and last traded at $32.1880, with a volume of 16335172 shares traded. The stock had previously closed at $32.43.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. UBS Group reaffirmed a "neutral" rating and issued a $43.00 target price (down from $50.00) on shares of Rollins in a report on Friday, July 24th. Zacks Research cut Rollins from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 28th. Citigroup began coverage on Rollins in a research note on Wednesday, July 15th. They set a "neutral" rating and a $46.00 price objective for the company. Royal Bank Of Canada cut Rollins from an "outperform" rating to a "sector perform" rating and decreased their price objective for the stock from $52.00 to $40.00 in a research report on Thursday, July 23rd. Finally, Raymond James Financial set a $35.00 target price on Rollins in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $48.71.

Rollins Stock Performance

The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58. The stock has a market cap of $15.47 billion, a price-to-earnings ratio of 29.19, a P/E/G ratio of 3.49 and a beta of 0.74. The stock's 50-day moving average is $37.71 and its 200 day moving average is $46.52.

Rollins (NYSE:ROL - Get Free Report) last released its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.02). The business had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%.The business's revenue for the quarter was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.30 EPS. As a group, analysts predict that Rollins, Inc. will post 1.18 earnings per share for the current fiscal year.

Rollins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were given a $0.1825 dividend. The ex-dividend date was Monday, August 10th. This represents a $0.73 annualized dividend and a yield of 2.3%. Rollins's dividend payout ratio is presently 66.36%.

Institutional Investors Weigh In On Rollins

A number of hedge funds and other institutional investors have recently bought and sold shares of ROL. BlackRock Inc. purchased a new position in shares of Rollins in the 2nd quarter valued at about $1,204,334,000. Geode Capital Management LLC boosted its holdings in Rollins by 6.6% during the fourth quarter. Geode Capital Management LLC now owns 10,163,847 shares of the business services provider's stock worth $608,256,000 after buying an additional 626,866 shares in the last quarter. Norges Bank purchased a new stake in Rollins during the fourth quarter worth about $244,669,000. AMF Tjanstepension AB grew its position in Rollins by 2.4% during the first quarter. AMF Tjanstepension AB now owns 3,669,234 shares of the business services provider's stock worth $195,974,000 after buying an additional 87,139 shares during the period. Finally, USS Investment Management Ltd increased its holdings in Rollins by 55.9% in the first quarter. USS Investment Management Ltd now owns 3,131,337 shares of the business services provider's stock valued at $167,260,000 after buying an additional 1,123,237 shares in the last quarter. Institutional investors and hedge funds own 51.79% of the company's stock.

Rollins Company Profile

Rollins, Inc is a global provider of pest and termite control services for residential and commercial customers. The company helps protect homes, businesses, and other properties from insects, rodents, termites, wildlife, and other pests through inspection, prevention, treatment, and ongoing monitoring programs.

Rollins operates through a portfolio of recognized pest control brands, including Orkin, Terminix, HomeTeam Pest Defense, Western Exterminator, and Critter Control. Its services include general pest management, termite protection, mosquito and bed bug control, wildlife management, and specialized commercial pest control programs.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins serves customers across the United States and internationally.

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