Rollins (NYSE:ROL) Shares Up 4.2% - What's Next?

Key Points

• Rollins shares rose 4.2% to approximately $32.18 in midday trading, although volume was 28% below the stock’s average daily level.
• Analyst sentiment remains cautious: Rollins has a consensus “Hold” rating and a $45.94 price target, while several firms recently downgraded the stock or cut their targets.
• The company’s latest quarterly results missed estimates, with earnings per share of $0.32 versus $0.34 expected, but revenue grew 7.9% year over year. Rollins also maintains a quarterly dividend of $0.1825 per share, yielding about 2.3% annually.

Rollins, Inc. (NYSE:ROL - Get Free Report)'s share price shot up 4.2% during mid-day trading on Thursday. The stock traded as high as $32.13 and last traded at $32.1790. 3,173,821 shares were traded during trading, a decline of 28% from the average daily volume of 4,398,021 shares. The stock had previously closed at $30.87.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. BNP Paribas Exane cut their price target on shares of Rollins from $44.00 to $35.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 29th. Raymond James Financial set a $35.00 price objective on shares of Rollins in a report on Thursday, July 23rd. Royal Bank Of Canada downgraded shares of Rollins from an "outperform" rating to a "sector perform" rating and lowered their target price for the company from $52.00 to $40.00 in a research note on Thursday, July 23rd. Weiss Ratings lowered shares of Rollins from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Finally, Canaccord Genuity Group set a $45.00 price objective on shares of Rollins and gave the company a "hold" rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $45.94.

Rollins Trading Up 4.0%

The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34. The business's fifty day moving average is $34.71 and its 200 day moving average is $44.18. The firm has a market capitalization of $15.45 billion, a price-to-earnings ratio of 29.25, a price-to-earnings-growth ratio of 3.38 and a beta of 0.73.

Rollins (NYSE:ROL - Get Free Report) last announced 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). The company had revenue of $1.08 billion during 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%.Rollins's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.30 earnings per share. Equities analysts predict that Rollins, Inc. will post 1.16 earnings per share for the current year.

Rollins Dividend Announcement

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

Institutional Investors Weigh In On Rollins

Hedge funds and other institutional investors have recently bought and sold shares of the company. Raiffeisen Bank International AG boosted its position in Rollins by 73.5% during the 2nd quarter. Raiffeisen Bank International AG now owns 642 shares of the business services provider's stock worth $27,000 after acquiring an additional 272 shares during the last quarter. Westpac Banking Corp acquired a new stake in shares of Rollins in the second quarter valued at approximately $42,000. Bayban bought a new stake in shares of Rollins in the fourth quarter worth $49,000. Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of Rollins in the second quarter worth $88,000. Finally, Livforsakringsbolaget Skandia Omsesidigt acquired a new position in Rollins during the second quarter worth $93,000. Institutional investors and hedge funds own 51.79% of the company's stock.

About Rollins

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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