Rollins (NYSE:ROL) Hits New 1-Year Low - Here's What Happened

Key Points

• Rollins shares hit a new 52-week low, falling to $35.92 and trading near $35.97, well below their 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with several firms cutting price targets or downgrading the stock; the consensus rating is “Hold” with an average target of $48.71.
• Rollins missed quarterly expectations, reporting $0.32 in earnings per share versus $0.34 expected and revenue of $1.08 billion versus $1.09 billion anticipated. The company maintained a quarterly dividend of $0.1825, equivalent to a 2.0% annualized yield.

Shares of Rollins, Inc. (NYSE:ROL - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $35.92 and last traded at $35.97, with a volume of 3946446 shares changing hands. The stock had previously closed at $36.20.

Analysts Set New Price Targets

Several research firms have recently issued reports on ROL. BNP Paribas Exane cut their price target on Rollins from $63.00 to $44.00 and set a "hold" rating for the company in a research note on Friday, July 24th. Raymond James Financial set a $35.00 target price on shares of Rollins in a report on Thursday, July 23rd. Barclays set a $45.00 target price on shares of Rollins and gave the stock an "overweight" rating in a research report on Friday, July 24th. Royal Bank Of Canada lowered Rollins from an "outperform" rating to a "sector perform" rating and decreased their price objective for the company from $52.00 to $40.00 in a research note on Thursday, July 23rd. Finally, Zacks Research downgraded shares of Rollins from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 28th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $48.71.

Rollins Trading Down 0.6%

The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58. The business has a fifty day moving average of $42.13 and a 200-day moving average of $50.97. The stock has a market capitalization of $17.31 billion, a price-to-earnings ratio of 32.70, a price-to-earnings-growth ratio of 3.95 and a beta of 0.75.

Rollins (NYSE:ROL - Get Free Report) last issued its quarterly earnings data 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 the consensus estimate of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The firm's revenue was up 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.30 earnings per share. On average, equities analysts anticipate that Rollins, Inc. will post 1.19 earnings per share for the current fiscal year.

Rollins Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a $0.1825 dividend. The ex-dividend date is Monday, August 10th. This represents a $0.73 dividend on an annualized basis and a dividend yield of 2.0%. Rollins's dividend payout ratio is currently 66.36%.

Hedge Funds Weigh In On Rollins

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Rollins by 5.5% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,812 shares of the business services provider's stock valued at $1,663,000 after acquiring an additional 1,620 shares in the last quarter. Empowered Funds LLC raised its position in shares of Rollins by 16.7% during the 1st quarter. Empowered Funds LLC now owns 6,427 shares of the business services provider's stock valued at $347,000 after acquiring an additional 918 shares during the last quarter. Woodline Partners LP boosted its holdings in Rollins by 40.7% during the first quarter. Woodline Partners LP now owns 23,728 shares of the business services provider's stock worth $1,282,000 after buying an additional 6,859 shares during the last quarter. Geneos Wealth Management Inc. grew its holdings in Rollins by 75.8% during the first quarter. Geneos Wealth Management Inc. now owns 870 shares of the business services provider's stock valued at $47,000 after purchasing an additional 375 shares during the period. Finally, First Trust Advisors LP grew its holdings in shares of Rollins by 185.0% in the 2nd quarter. First Trust Advisors LP now owns 368,718 shares of the business services provider's stock valued at $20,803,000 after buying an additional 239,361 shares during the period. 51.79% of the stock is currently owned by institutional investors and hedge funds.

Rollins Company Profile

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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