Rollins (NYSE:ROL) Given "Neutral" Rating at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase reaffirmed Rollins at a “neutral” rating but cut its price target sharply to $45 from $70, implying about 14% upside from the previous close.
• Rollins recently missed Q2 earnings and revenue estimates, reporting $0.32 EPS versus the expected $0.34 and $1.08 billion in revenue versus $1.09 billion expected.
• Despite the miss, the company still posted 7.9% year-over-year revenue growth, but analysts cited softer residential lead volume and margin pressure as near-term concerns.

Rollins (NYSE:ROL - Get Free Report)'s stock had its "neutral" rating reaffirmed by equities researchers at JPMorgan Chase & Co. in a report released on Friday,Benzinga reports. They presently have a $45.00 price objective on the business services provider's stock, down from their prior price objective of $70.00. JPMorgan Chase & Co.'s price target indicates a potential upside of 14.12% from the stock's previous close.

A number of other equities research analysts also recently commented on ROL. Citigroup began coverage on Rollins in a report on Wednesday, July 15th. They issued a "neutral" rating and a $46.00 price objective for the company. Raymond James Financial set a $35.00 target price on shares of Rollins in a research note on Thursday. Sanford C. Bernstein lowered shares of Rollins from an "outperform" rating to a "market perform" rating and decreased their price target for the company from $70.00 to $52.00 in a report on Friday, May 29th. Weiss Ratings lowered Rollins from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. Finally, Royal Bank Of Canada downgraded Rollins from an "outperform" rating to a "sector perform" rating and lowered their price target for the stock from $52.00 to $40.00 in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $51.06.

Rollins Price Performance

Rollins stock opened at $39.43 on Friday. The business's 50-day simple moving average is $46.40 and its 200 day simple moving average is $53.87. The company has a quick ratio of 0.59, a current ratio of 0.65 and a debt-to-equity ratio of 0.35. The stock has a market cap of $18.98 billion, a price-to-earnings ratio of 35.85, a P/E/G ratio of 2.67 and a beta of 0.75. Rollins has a 12-month low of $36.59 and a 12-month high of $66.14.

Rollins (NYSE:ROL - Get Free Report) last posted 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). Rollins had a return on equity of 38.81% and a net margin of 13.55%.The business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same period last year, the firm earned $0.30 earnings per share. The company's quarterly revenue was up 7.9% on a year-over-year basis. As a group, research analysts anticipate that Rollins will post 1.24 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. National Pension Service raised its stake in Rollins by 138.3% in the 4th quarter. National Pension Service now owns 51,277 shares of the business services provider's stock valued at $3,078,000 after acquiring an additional 29,758 shares during the period. Moody Lynn & Lieberson LLC raised its position in shares of Rollins by 718.8% in the fourth quarter. Moody Lynn & Lieberson LLC now owns 32,244 shares of the business services provider's stock valued at $1,935,000 after purchasing an additional 28,306 shares during the period. Bessemer Group Inc. lifted its stake in shares of Rollins by 11,772.1% during the 4th quarter. Bessemer Group Inc. now owns 1,084,398 shares of the business services provider's stock valued at $65,086,000 after buying an additional 1,075,264 shares in the last quarter. USS Investment Management Ltd lifted its stake in shares of 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 valued at $167,260,000 after buying an additional 1,123,237 shares in the last quarter. Finally, Concurrent Investment Advisors LLC boosted its holdings in Rollins by 65.7% in the 4th quarter. Concurrent Investment Advisors LLC now owns 44,265 shares of the business services provider's stock worth $2,657,000 after buying an additional 17,546 shares during the period. Institutional investors and hedge funds own 51.79% of the company's stock.

Key Headlines Impacting Rollins

Here are the key news stories impacting Rollins this week:

• Negative Sentiment: Rollins missed both earnings and revenue estimates, raising concerns that growth is slowing more than the market expected.
• Negative Sentiment: Management pointed to softer residential lead volume and margin pressure, suggesting near-term profitability may remain under strain.
• Neutral Sentiment: The company still delivered 7.9% year-over-year revenue growth and continued its long streak of quarterly revenue gains.
• Neutral Sentiment: Bank of America reaffirmed a neutral rating but cut its price target to $35 from $55, reflecting a more cautious stance on the stock.

About Rollins

Rollins, Inc NYSE: ROL is a provider of pest and termite control services operating through a network of subsidiaries and franchises. Headquartered in Atlanta, Georgia, the company offers a broad range of pest management solutions for both residential and commercial customers, positioning itself as a specialist in protecting property and public health from pests and vectors.

Its service offerings include general pest control, termite inspection and treatment, bed bug remediation, mosquito and vector control, wildlife exclusion, and related specialty services.

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