Rentokil Initial PLC (NYSE:RTO) Short Interest Down 40.7% in March

Key Points

• Short interest plunged by 40.7% in March to 2,761,212 shares, implying a days-to-cover ratio of about 2.0 and roughly 0.5% of the float sold short.
• Rentokil announced a dividend of $0.412 payable May 19 to shareholders of record on April 10 (ex-dividend April 10); the article reports a dividend yield of 245.0%.
• Analyst sentiment is broadly positive with an average rating of “Moderate Buy” and an average price target of $34.50, after several upgrades (Morgan Stanley, Bank of America, UBS) and some downgrades.

Rentokil Initial PLC (NYSE:RTO - Get Free Report) was the target of a significant decrease in short interest in the month of March. As of March 31st, there was short interest totaling 2,761,212 shares, a decrease of 40.7% from the March 15th total of 4,659,343 shares. Based on an average daily volume of 1,379,419 shares, the days-to-cover ratio is presently 2.0 days. Approximately 0.5% of the shares of the stock are sold short.

Rentokil Initial Stock Performance

NYSE RTO traded down $0.34 during trading on Monday, hitting $33.26. 94,977 shares of the company's stock were exchanged, compared to its average volume of 1,515,075. The stock's 50 day moving average price is $31.65 and its two-hundred day moving average price is $29.66. Rentokil Initial has a fifty-two week low of $21.68 and a fifty-two week high of $34.09. The company has a quick ratio of 1.07, a current ratio of 1.16 and a debt-to-equity ratio of 0.76.

Rentokil Initial Announces Dividend

The company also recently disclosed a dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Friday, April 10th will be paid a $0.412 dividend. The ex-dividend date of this dividend is Friday, April 10th. This represents a dividend yield of 245.0%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on RTO shares. Morgan Stanley raised shares of Rentokil Initial from an "equal weight" rating to an "overweight" rating in a research report on Tuesday, January 6th. Deutsche Bank Aktiengesellschaft cut shares of Rentokil Initial from a "buy" rating to a "hold" rating in a research report on Tuesday, February 24th. Bank of America raised Rentokil Initial from a "neutral" rating to a "buy" rating and set a $34.00 target price for the company in a research note on Thursday, December 18th. Weiss Ratings reissued a "hold (c-)" rating on shares of Rentokil Initial in a research note on Thursday, January 22nd. Finally, UBS Group raised Rentokil Initial from a "neutral" rating to a "buy" rating in a research note on Thursday, March 12th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $34.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RTO. Caitong International Asset Management Co. Ltd increased its stake in shares of Rentokil Initial by 222.2% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,163 shares of the company's stock valued at $34,000 after buying an additional 802 shares during the period. GAMMA Investing LLC raised its position in shares of Rentokil Initial by 76.5% during the fourth quarter. GAMMA Investing LLC now owns 1,232 shares of the company's stock worth $36,000 after acquiring an additional 534 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of Rentokil Initial during the fourth quarter worth about $39,000. Smartleaf Asset Management LLC raised its position in shares of Rentokil Initial by 171.0% during the third quarter. Smartleaf Asset Management LLC now owns 1,726 shares of the company's stock worth $43,000 after acquiring an additional 1,089 shares during the last quarter. Finally, IFP Advisors Inc increased its position in Rentokil Initial by 53.8% during the 3rd quarter. IFP Advisors Inc now owns 1,972 shares of the company's stock valued at $50,000 after purchasing an additional 690 shares during the period. Institutional investors and hedge funds own 9.91% of the company's stock.

Rentokil Initial Company Profile

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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