Rollins (NYSE:ROL) Sets New 12-Month Low - Should You Sell?

Key Points

• Rollins shares hit a new 52-week low of $34.32, trading well below their 50-day and 200-day moving averages.
• Analysts have broadly become more cautious, with recent price-target cuts and an average rating of “Hold” alongside a consensus target of $48.71.
• The company’s latest quarterly results modestly missed expectations, though revenue increased 7.9% year over year; Rollins also maintains a $0.1825 quarterly dividend, yielding about 2.1%.

Rollins, Inc. (NYSE:ROL - Get Free Report) shares reached a new 52-week low on Tuesday . The stock traded as low as $34.32 and last traded at $34.4030, with a volume of 880036 shares traded. The stock had previously closed at $35.31.

Analysts Set New Price Targets

ROL has been the topic of a number of recent analyst reports. Sanford C. Bernstein lowered Rollins from an "outperform" rating to a "market perform" rating and cut their target price for the stock from $70.00 to $52.00 in a research report on Friday, May 29th. BNP Paribas Exane decreased their price target on Rollins from $63.00 to $44.00 and set a "hold" rating for the company in a research report on Friday, July 24th. UBS Group reissued a "neutral" rating and issued a $43.00 price target (down from $50.00) on shares of Rollins in a research note on Friday, July 24th. Zacks Research downgraded Rollins from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 28th. Finally, Canaccord Genuity Group set a $45.00 price objective on shares of Rollins and gave the company a "hold" rating in a research note on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $48.71.

Rollins Price Performance

The stock has a fifty day moving average price of $38.61 and a 200-day moving average price of $47.28. The company has a market cap of $16.39 billion, a PE ratio of 30.98, a price-to-earnings-growth ratio of 3.74 and a beta of 0.74. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58.

Rollins (NYSE:ROL - Get Free Report) last issued its quarterly 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). The business had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The business's quarterly revenue was up 7.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.30 EPS. On average, equities analysts expect that Rollins, Inc. will post 1.18 earnings per share for the current year.

Rollins Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 10th were issued a $0.1825 dividend. The ex-dividend date was Monday, August 10th. This represents a $0.73 dividend on an annualized basis and a dividend yield of 2.1%. Rollins's dividend payout ratio is currently 66.36%.

Institutional Trading of Rollins

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Rollins during the 2nd quarter valued at about $1,204,334,000. Geode Capital Management LLC increased its stake in Rollins by 6.6% during the 4th quarter. Geode Capital Management LLC now owns 10,163,847 shares of the business services provider's stock worth $608,256,000 after purchasing an additional 626,866 shares in the last quarter. Norges Bank bought a new stake in Rollins during the 4th quarter worth approximately $244,669,000. AMF Tjanstepension AB increased its stake in Rollins by 2.4% during the 1st quarter. AMF Tjanstepension AB now owns 3,669,234 shares of the business services provider's stock worth $195,974,000 after purchasing an additional 87,139 shares in the last quarter. Finally, USS Investment Management Ltd raised its holdings in Rollins by 55.9% during the 1st quarter. USS Investment Management Ltd now owns 3,131,337 shares of the business services provider's stock worth $167,260,000 after buying an additional 1,123,237 shares during the period. 51.79% of the stock is owned by hedge funds and other institutional investors.

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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