Rollins (NYSE:ROL) Stock Price Down 6.7% - Time to Sell?

Key Points

• Rollins shares fell 6.7% to about $30.30 in heavy trading, with volume 71% above average. The stock is trading well below its 50-day and 200-day moving averages.
• Analyst sentiment is broadly cautious: the consensus rating is “Hold”, with 11 Holds and three Sells, while the average price target is $47.94. Several firms recently cut their price targets or downgraded the stock.
• Rollins missed quarterly expectations, reporting $0.32 in EPS versus $0.34 expected and revenue of $1.08 billion versus $1.09 billion forecast, though revenue rose 7.9% year over year. The company pays a $0.73 annualized dividend, yielding approximately 2.4%.

Rollins, Inc. (NYSE:ROL - Get Free Report) fell 6.7% on Thursday . The company traded as low as $30.12 and last traded at $30.3010. 7,086,465 shares traded hands during mid-day trading, an increase of 71% from the average session volume of 4,147,090 shares. The stock had previously closed at $32.49.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ROL. Morgan Stanley dropped their price target on Rollins from $70.00 to $65.00 and set an "overweight" rating for the company in a research report on Wednesday, July 8th. Argus lowered Rollins from a "buy" rating to a "hold" rating in a research note on Wednesday, August 5th. Canaccord Genuity Group set a $45.00 price target on shares of Rollins and gave the company a "hold" rating in a research report on Thursday, July 23rd. UBS Group restated a "neutral" rating and issued a $43.00 price objective (down from $50.00) on shares of Rollins in a report on Friday, July 24th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating and issued a $45.00 price objective (down from $70.00) on shares of Rollins in a research note on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Rollins presently has a consensus rating of "Hold" and a consensus price target of $47.94.

Rollins Stock Down 6.7%

The stock has a market cap of $14.59 billion, a P/E ratio of 27.59, a P/E/G ratio of 3.53 and a beta of 0.74. 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 company has a 50-day simple moving average of $37.00 and a two-hundred day simple moving average of $45.97.

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). 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 prior year, the business posted $0.30 EPS. The firm's revenue for the quarter was up 7.9% on a year-over-year basis. On average, equities analysts forecast that Rollins, Inc. will post 1.18 EPS for the current year.

Rollins Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors 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 annualized dividend and a yield of 2.4%. Rollins's payout ratio is 66.36%.

Institutional Trading of Rollins

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Raiffeisen Bank International AG raised its position in shares of Rollins by 73.5% in 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 in the last quarter. Westpac Banking Corp bought a new position in Rollins in the second quarter worth $42,000. Fideuram Asset Management Ireland dac purchased a new position in Rollins during the fourth quarter valued at $43,000. Root Financial Partners LLC boosted its holdings in shares of Rollins by 47.3% during the 4th quarter. Root Financial Partners LLC now owns 782 shares of the business services provider's stock valued at $47,000 after buying an additional 251 shares in the last quarter. Finally, Hantz Financial Services Inc. boosted its holdings in shares of Rollins by 121.6% during the 4th quarter. Hantz Financial Services Inc. now owns 820 shares of the business services provider's stock valued at $49,000 after buying an additional 450 shares in the last quarter. 51.79% of the stock is currently 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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