Rollins (NYSE:ROL) Sets New 1-Year Low - What's Next?

Key Points

• Rollins shares hit a new 52-week low at $35.25, falling below the $35.86 prior close. The stock trades well below its 50-day and 200-day moving averages of $39.40 and $48.19, respectively.
• Analyst sentiment is mixed but leans cautious: Rollins has an average rating of “Hold” and an average price target of $48.71, while several firms recently downgraded the stock or cut their targets.
• Recent quarterly results missed expectations, with EPS of $0.32 versus $0.34 expected and revenue of $1.08 billion versus $1.09 billion forecast. The company maintained a quarterly dividend of $0.1825 per share, representing a 2.1% yield.

Rollins, Inc. (NYSE:ROL - Get Free Report)'s share price reached a new 52-week low on Tuesday . The stock traded as low as $35.25 and last traded at $35.3480, with a volume of 5236770 shares traded. The stock had previously closed at $35.86.

Analyst Upgrades and Downgrades

ROL has been the topic of a number of research reports. Zacks Research cut shares of Rollins from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 28th. Canaccord Genuity Group set a $45.00 price objective on Rollins and gave the company a "hold" rating in a report on Thursday, July 23rd. Bank of America restated a "neutral" rating and issued a $35.00 target price (down from $55.00) on shares of Rollins in a research note on Thursday, July 23rd. Barclays set a $45.00 price target on Rollins and gave the stock an "overweight" rating in a research note on Friday, July 24th. Finally, Sanford C. Bernstein cut Rollins from an "outperform" rating to a "market perform" rating and lowered their price objective for the company from $70.00 to $52.00 in a research note on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $48.71.

Rollins Price Performance

The company has a current ratio of 0.63, a quick ratio of 0.58 and a debt-to-equity ratio of 0.34. The stock has a market capitalization of $16.85 billion, a PE ratio of 32.13, a PEG ratio of 3.86 and a beta of 0.74. The business has a fifty day moving average price of $39.40 and a 200-day moving average price of $48.19.

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 for the quarter, missing analysts' consensus estimates of $0.34 by ($0.02). Rollins had a return on equity of 38.81% and a net margin of 13.55%.The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter in the previous year, the firm earned $0.30 EPS. The business's quarterly revenue was up 7.9% compared to the same quarter last year. Research analysts expect that Rollins, Inc. will post 1.18 EPS for the current fiscal year.

Rollins Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a dividend of $0.1825 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $0.73 annualized dividend and a dividend yield of 2.1%. Rollins's payout ratio is 66.36%.

Institutional Trading of Rollins

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. National Pension Service lifted its holdings in shares of Rollins by 138.3% during the fourth quarter. National Pension Service now owns 51,277 shares of the business services provider's stock valued at $3,078,000 after purchasing an additional 29,758 shares during the last quarter. Dudley & Shanley Inc. grew its stake in shares of Rollins by 8.8% in the 2nd quarter. Dudley & Shanley Inc. now owns 495,655 shares of the business services provider's stock worth $20,689,000 after buying an additional 39,925 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in Rollins by 16.8% during the 1st quarter. Public Employees Retirement System of Ohio now owns 216,278 shares of the business services provider's stock valued at $11,551,000 after buying an additional 31,173 shares in the last quarter. Danske Bank A S bought a new position in Rollins during the 2nd quarter valued at approximately $61,792,000. Finally, USS Investment Management Ltd raised its stake in Rollins by 55.9% during 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 during the last quarter. Hedge funds and other 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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