Rollins (NYSE:ROL) Sets New 12-Month Low Following Analyst Downgrade

Key Points

• Rollins shares hit a new 52-week low of $29.72 after Morgan Stanley cut its price target from $60 to $45, despite maintaining an overweight rating.
• Analyst sentiment has weakened, with downgrades from Zacks Research, Argus and Bank of America. The stock carries an average “Hold” rating and a consensus price target of $45.94.
• Rollins’ latest quarterly results fell slightly short of expectations, though revenue increased 7.9% year over year. The company paid a quarterly dividend of $0.1825 per share, equivalent to a 2.4% annualized yield.

Rollins, Inc. (NYSE:ROL - Get Free Report) reached a new 52-week low during trading on Wednesday after Morgan Stanley lowered their price target on the stock from $60.00 to $45.00. Morgan Stanley currently has an overweight rating on the stock. Rollins traded as low as $29.72 and last traded at $29.9430, with a volume of 827063 shares traded. The stock had previously closed at $30.50.

Other equities analysts have also recently issued research reports about the stock. Zacks Research cut shares of Rollins from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 28th. Argus lowered shares of Rollins from a "buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Citigroup assumed coverage on shares of Rollins in a report on Wednesday, July 15th. They set a "neutral" rating and a $46.00 price objective for the company. Bank of America restated a "neutral" rating and set a $35.00 price objective (down from $55.00) on shares of Rollins in a research report on Thursday, July 23rd. Finally, Barclays set a $45.00 target price on shares of Rollins and gave the stock an "overweight" rating in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Rollins has an average rating of "Hold" and an average price target of $45.94.

Institutional Trading of Rollins

Several hedge funds have recently bought and sold shares of the stock. Sequoia Financial Advisors LLC grew its stake in Rollins by 1.1% in the 1st quarter. Sequoia Financial Advisors LLC now owns 16,365 shares of the business services provider's stock worth $874,000 after acquiring an additional 183 shares in the last quarter. IFM Investors Pty Ltd grew its stake in Rollins by 0.3% in the first quarter. IFM Investors Pty Ltd now owns 57,895 shares of the business services provider's stock worth $3,092,000 after purchasing an additional 185 shares in the last quarter. New Mexico Educational Retirement Board increased its holdings in Rollins by 1.6% during the 4th quarter. New Mexico Educational Retirement Board now owns 12,875 shares of the business services provider's stock worth $773,000 after purchasing an additional 200 shares during the period. DGS Capital Management LLC increased its holdings in Rollins by 4.0% during the 1st quarter. DGS Capital Management LLC now owns 5,602 shares of the business services provider's stock worth $299,000 after purchasing an additional 215 shares during the period. Finally, Sterling Group Wealth Management LLC grew its position in shares of Rollins by 6.1% during the 1st quarter. Sterling Group Wealth Management LLC now owns 4,106 shares of the business services provider's stock worth $219,000 after buying an additional 235 shares in the last quarter. Institutional investors own 51.79% of the company's stock.

Rollins Stock Down 1.5%

The firm has a market cap of $14.45 billion, a P/E ratio of 27.24, a P/E/G ratio of 3.33 and a beta of 0.74. 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 business has a 50-day moving average price of $35.85 and a 200-day moving average price of $45.22.

Rollins (NYSE:ROL - Get Free Report) last issued 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 the consensus estimate of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%.The firm's revenue was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.30 earnings per share. On average, equities analysts forecast that Rollins, Inc. will post 1.17 EPS for the current fiscal year.

Rollins Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were paid a dividend of $0.1825 per share. The ex-dividend date was Monday, August 10th. This represents a $0.73 dividend on an annualized basis and a dividend yield of 2.4%. Rollins's dividend payout ratio (DPR) is currently 66.36%.

Rollins Company Profile

Rollins, Inc is a global provider of pest and wildlife control services. The company serves residential and commercial customers with solutions for common pests, including insects, rodents, termites, bedbugs and mosquitoes. Its services also include wildlife management, sanitation and related specialty treatments.

Rollins operates through a portfolio of well-known brands, including Orkin, Terminix, HomeTeam Pest Defense and Critter Control. These brands provide recurring pest prevention, inspections, extermination, termite control and other property protection services to homeowners, businesses and institutions.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins has expanded its operations across the United States and into international markets.

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