Rentokil Initial (NYSE:RTO) Hits New 12-Month Low - Should You Sell?

Key Points

• Rentokil Initial shares hit a new 52-week low, trading as low as $23.26 and well below their 50-day and 200-day moving averages of $28.01 and $30.54.
• Analyst sentiment is mixed: Zacks downgraded the stock to “strong sell,” while Goldman Sachs upgraded it to “buy.” Overall, analysts maintain a “Moderate Buy” consensus with an average price target of $31.90.
• The company declared a $0.224 dividend payable September 22, while institutional investors own about 9.91% of outstanding shares and several major holders recently increased their positions.

Rentokil Initial PLC (NYSE:RTO - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $23.26 and last traded at $23.6680, with a volume of 154575 shares changing hands. The stock had previously closed at $23.59.

Analyst Upgrades and Downgrades

A number of brokerages have commented on RTO. Zacks Research cut Rentokil Initial from a "hold" rating to a "strong sell" rating in a research report on Monday, June 15th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Rentokil Initial in a research note on Monday, August 3rd. Weiss Ratings reissued a "hold (c)" rating on shares of Rentokil Initial in a report on Wednesday, June 24th. The Goldman Sachs Group upgraded shares of Rentokil Initial from a "neutral" rating to a "buy" rating in a research note on Monday, July 6th. Finally, Wall Street Zen downgraded shares of Rentokil Initial from a "buy" rating to a "hold" rating in a report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Rentokil Initial currently has a consensus rating of "Moderate Buy" and an average target price of $31.90.

Rentokil Initial Price Performance

The firm has a 50-day moving average of $28.01 and a 200-day moving average of $30.54. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.07 and a current ratio of 1.16.

Rentokil Initial Cuts Dividend

The business also recently declared a dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Friday, August 14th will be paid a $0.224 dividend. The ex-dividend date is Friday, August 14th. This represents a yield of 188.0%.

Institutional Investors Weigh In On Rentokil Initial

Several large investors have recently made changes to their positions in the company. Versant Capital Management Inc lifted its position in shares of Rentokil Initial by 10.8% in the second quarter. Versant Capital Management Inc now owns 9,965 shares of the company's stock worth $285,000 after buying an additional 970 shares in the last quarter. Parallel Advisors LLC increased its stake in Rentokil Initial by 50.5% in the 1st quarter. Parallel Advisors LLC now owns 2,107 shares of the company's stock worth $66,000 after acquiring an additional 707 shares during the last quarter. NewEdge Advisors LLC increased its stake in Rentokil Initial by 1,098.7% in the 1st quarter. NewEdge Advisors LLC now owns 9,062 shares of the company's stock worth $285,000 after acquiring an additional 8,306 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Rentokil Initial by 60.7% during the 1st quarter. Bank of America Corp DE now owns 6,650,998 shares of the company's stock worth $209,373,000 after acquiring an additional 2,511,135 shares in the last quarter. Finally, Janus Henderson Group PLC raised its holdings in shares of Rentokil Initial by 3.0% during the 1st quarter. Janus Henderson Group PLC now owns 16,591,965 shares of the company's stock worth $522,329,000 after acquiring an additional 490,885 shares in the last quarter. 9.91% of the stock is owned by institutional investors.

About Rentokil Initial

Rentokil Initial PLC is a global business services company specializing in pest control, hygiene and workwear services. Headquartered in Crawley, West Sussex, United Kingdom, the company delivers outsourced solutions designed to protect people, preserve assets and enhance workplaces for both commercial and residential customers.

Under the Rentokil Pest Control brand, the company offers services ranging from routine inspections and treatment of insects, rodents and birds to specialised programmes for food manufacturing and healthcare environments.

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