Rollins (NYSE:ROL) Price Target Raised to $61.00

Key Points

• Analyst update: UBS raised its price target on Rollins to $61 (from $58) with a "neutral" rating, while consensus remains a Moderate Buy
• Quarterly results: Rollins reported Q1 revenue of $906.4M, up 10.2% year-over-year with 6.6% organic growth and EPS of $0.24 in line with estimates, and declared a quarterly dividend of $0.1825 per share.
• Risk and ownership signals: The stock trades at a rich valuation (~52x P/E), insiders sold about 67,039 shares (~$4.18M) in the past three months, while institutional ownership is high (~51.8%) with large purchases from firms like Norges Bank and Vanguard.

Rollins (NYSE:ROL - Get Free Report) had its target price upped by equities researchers at UBS Group from $58.00 to $61.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the business services provider's stock. UBS Group's price objective suggests a potential upside of 8.06% from the stock's current price.

Other analysts also recently issued research reports about the stock. Royal Bank Of Canada set a $67.00 target price on shares of Rollins and gave the stock an "outperform" rating in a research note on Thursday, February 12th. The Goldman Sachs Group reiterated a "buy" rating and issued a $67.00 target price on shares of Rollins in a research report on Thursday. Canaccord Genuity Group set a $51.00 price objective on Rollins and gave the stock a "hold" rating in a report on Friday. Wells Fargo & Company set a $56.00 target price on shares of Rollins and gave the company an "equal weight" rating in a report on Thursday, February 12th. Finally, Loop Capital initiated coverage on shares of Rollins in a research note on Monday, April 13th. They set a "hold" rating and a $56.00 price target for the company. Eleven investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Rollins currently has a consensus rating of "Moderate Buy" and an average target price of $65.21.

Rollins Stock Performance

NYSE ROL traded down $0.54 during trading hours on Friday, reaching $56.45. The company's stock had a trading volume of 331,675 shares, compared to its average volume of 2,996,790. Rollins has a 52 week low of $52.32 and a 52 week high of $66.14. The company has a current ratio of 0.60, a quick ratio of 0.55 and a debt-to-equity ratio of 0.35. The stock has a market cap of $27.21 billion, a PE ratio of 51.90, a PEG ratio of 3.41 and a beta of 0.84. The business has a 50-day simple moving average of $56.17 and a 200 day simple moving average of $58.66.

Rollins (NYSE:ROL - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The business services provider reported $0.24 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.24. The business had revenue of $906.42 million during the quarter, compared to analyst estimates of $895.17 million. Rollins had a net margin of 13.77% and a return on equity of 37.91%. Rollins's quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.22 EPS. Equities research analysts predict that Rollins will post 1.24 earnings per share for the current fiscal year.

Insider Transactions at Rollins

In other Rollins news, Chairman John F. Wilson sold 5,344 shares of the business's stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $62.83, for a total value of $335,763.52. Following the completion of the transaction, the chairman owned 594,705 shares in the company, valued at $37,365,315.15. The trade was a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Elizabeth B. Chandler sold 14,201 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $59.36, for a total value of $842,971.36. Following the sale, the insider directly owned 55,977 shares of the company's stock, valued at approximately $3,322,794.72. This represents a 20.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 67,039 shares of company stock valued at $4,177,480. Corporate insiders own 5.77% of the company's stock.

Institutional Investors Weigh In On Rollins

Hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in shares of Rollins during the 4th quarter valued at about $244,669,000. Pictet Asset Management Holding SA lifted its holdings in shares of Rollins by 188.2% in the first quarter. Pictet Asset Management Holding SA now owns 2,908,818 shares of the business services provider's stock valued at $155,335,000 after buying an additional 1,899,515 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Rollins by 4.3% during the fourth quarter. Vanguard Group Inc. now owns 38,282,523 shares of the business services provider's stock valued at $2,297,717,000 after purchasing an additional 1,562,241 shares during the last quarter. Bessemer Group Inc. grew its stake in shares of Rollins by 11,772.1% in 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 during the period. Finally, Ghisallo Capital Management LLC acquired a new position in Rollins during the 4th quarter valued at about $60,020,000. 51.79% of the stock is currently owned by institutional investors and hedge funds.

More Rollins News

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Q1 revenue beat and solid organic growth: Rollins reported Q1 revenue of $906.4M, up 10.2% year-over-year, with organic revenue growth of 6.6% driven by seasonal demand at Orkin and strength across segments. This top-line beat is the primary driver of bullish investor reaction. PR: Q1 Results
• Positive Sentiment: Dividend declared: Rollins announced a quarterly dividend of $0.1825 per share (annualized yield ~1.3%), payable June 10 to holders of record May 11. Cash returns can support investor confidence. Press Release
• Positive Sentiment: Management tone upbeat on call: Management emphasized acceleration of demand in March and an improving organic growth profile on the earnings call and accompanying slides, which reassured investors about near-term momentum. Conference Call / Slides
• Neutral Sentiment: EPS in line with expectations: Q1 EPS of $0.24 matched consensus (vs $0.22 a year ago), so while earnings grew, there was no upside surprise on profitability. Analysts are watching margin leverage as volumes rise. Zacks: EPS Match
• Neutral Sentiment: Full materials available for review: The earnings slide deck and transcript were posted; investors can dig into segment trends and regional performance for guidance clarity. Earnings Transcript
• Negative Sentiment: Rich valuation and limited EPS upside: Rollins trades at a high P/E (~52x) and while revenue momentum is positive, stretched valuation means investors expect continued growth acceleration; any slowdown or margin pressure could weigh on the stock. Zacks Analysis

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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