Rollins (NYSE:ROL) Hits New 52-Week Low After Analyst Downgrade

Key Points

• Rollins shares hit a new 52-week low of $36.40 after Argus downgraded the stock from “buy” to “hold.” The stock closed down 3.1% at approximately $36.44.
• Analyst sentiment has weakened, with the stock carrying a consensus “Hold” rating and an average price target of $48.71. Recent firms lowered ratings or price targets, including Wells Fargo’s $32 target and UBS’s $43 target.
• Rollins missed quarterly expectations, reporting $0.32 in EPS versus the $0.34 consensus and revenue of $1.08 billion versus $1.09 billion expected. The company nevertheless announced a quarterly dividend of $0.1825, equivalent to an annualized $0.73 payout and a 2.0% yield.

Rollins, Inc. (NYSE:ROL - Get Free Report)'s stock price hit a new 52-week low during trading on Thursday after Argus downgraded the stock from a buy rating to a hold rating. The stock traded as low as $36.40 and last traded at $36.4440, with a volume of 2164197 shares trading hands. The stock had previously closed at $37.57.

A number of other research analysts have also issued reports on ROL. UBS Group reiterated a "neutral" rating and set a $43.00 price target (down from $50.00) on shares of Rollins in a research report on Friday, July 24th. Wells Fargo & Company cut shares of Rollins from an "overweight" rating to an "underweight" rating and cut their price objective for the company from $46.00 to $32.00 in a research note on Friday, July 24th. Raymond James Financial set a $35.00 price objective on shares of Rollins in a report on Thursday, July 23rd. Sanford C. Bernstein cut shares of Rollins from an "outperform" rating to a "market perform" rating and lowered their target price for the company from $70.00 to $52.00 in a research note on Friday, May 29th. Finally, Rothschild & Co Redburn set a $66.00 price target on shares of Rollins and gave the stock a "buy" rating in a research note on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $48.71.

Institutional Investors Weigh In On Rollins

Institutional investors have recently bought and sold shares of the business. DV Equities LLC bought a new stake in shares of Rollins in the 4th quarter valued at approximately $25,000. Cornerstone Planning Group LLC increased its position in Rollins by 528.4% during the fourth quarter. Cornerstone Planning Group LLC now owns 421 shares of the business services provider's stock worth $26,000 after buying an additional 354 shares during the last quarter. Torren Management LLC bought a new position in Rollins during the fourth quarter valued at about $36,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Rollins in the fourth quarter worth about $43,000. Finally, Quarry LP raised its stake in shares of Rollins by 155.2% in the 4th quarter. Quarry LP now owns 740 shares of the business services provider's stock valued at $44,000 after acquiring an additional 450 shares in the last quarter. 51.79% of the stock is currently owned by institutional investors and hedge funds.

Rollins Trading Down 3.1%

The stock has a market capitalization of $17.52 billion, a price-to-earnings ratio of 33.09, a price-to-earnings-growth ratio of 4.10 and a beta of 0.75. The company has a current ratio of 0.63, a quick ratio of 0.58 and a debt-to-equity ratio of 0.34. The company has a fifty day moving average of $43.74 and a two-hundred day moving average of $52.46.

Rollins (NYSE:ROL - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $0.32 EPS 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 analyst estimates of $1.09 billion. During the same quarter last year, the firm earned $0.30 earnings per share. The firm's quarterly revenue was up 7.9% compared to the same quarter last year. On average, research analysts expect that Rollins, Inc. will post 1.2 EPS for the current year.

Rollins Dividend Announcement

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

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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