Rollins (NYSE:ROL) Reaches New 12-Month High - Still a Buy?

Key Points

• Rollins, Inc. has reached a new 52-week high of $58.78, with analysts providing optimistic price targets that range from $50.00 to $72.00, reflecting a consensus rating of "Moderate Buy."
• The company reported a 12.1% increase in revenue year-over-year as it posted $999.53 million for the quarter, alongside an earnings per share of $0.30 exceeding the consensus estimate.
• Rollins has declared a quarterly dividend of $0.165 per share, resulting in an annualized yield of 1.1% and a payout ratio of 65.35%.

Rollins, Inc. (NYSE:ROL - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The stock traded as high as $58.78 and last traded at $58.64, with a volume of 133898 shares trading hands. The stock had previously closed at $58.46.

Analyst Ratings Changes

Several research firms recently weighed in on ROL. Piper Sandler upped their price target on Rollins from $70.00 to $72.00 and gave the company an "overweight" rating in a research report on Friday, July 25th. Wells Fargo & Company reissued an "overweight" rating and set a $65.00 price target (up from $63.00) on shares of Rollins in a research report on Wednesday, June 25th. Royal Bank Of Canada upped their price target on Rollins from $52.00 to $62.00 and gave the company an "outperform" rating in a research report on Thursday, April 17th. Jefferies Financial Group raised Rollins from a "hold" rating to a "buy" rating and upped their price target for the company from $55.00 to $65.00 in a research report on Monday, June 2nd. Finally, Canaccord Genuity Group boosted their target price on Rollins from $49.00 to $50.00 and gave the company a "hold" rating in a research note on Friday, April 25th. Four equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $61.40.

Rollins Price Performance

The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.63 and a current ratio of 0.68. The firm has a market capitalization of $28.31 billion, a P/E ratio of 57.90 and a beta of 0.69. The company has a 50-day moving average price of $56.65 and a 200-day moving average price of $54.19.

Rollins (NYSE:ROL - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The business services provider reported $0.30 EPS for the quarter, topping the consensus estimate of $0.29 by $0.01. Rollins had a return on equity of 36.96% and a net margin of 13.70%. The business had revenue of $999.53 million for the quarter, compared to the consensus estimate of $988.77 million. During the same quarter last year, the business posted $0.27 EPS. The firm's revenue was up 12.1% compared to the same quarter last year. On average, sell-side analysts predict that Rollins, Inc. will post 1.09 earnings per share for the current year.

Rollins Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Monday, August 11th will be issued a dividend of $0.165 per share. The ex-dividend date is Monday, August 11th. This represents a $0.66 dividend on an annualized basis and a yield of 1.1%. Rollins's dividend payout ratio (DPR) is presently 65.35%.

Insider Activity at Rollins

In other Rollins news, insider Thomas D. Tesh sold 1,921 shares of the company's stock in a transaction on Friday, May 9th. The stock was sold at an average price of $56.54, for a total transaction of $108,613.34. Following the completion of the sale, the insider directly owned 38,028 shares in the company, valued at $2,150,103.12. This represents a 4.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman John F. Wilson sold 30,000 shares of the company's stock in a transaction on Thursday, July 24th. The stock was sold at an average price of $58.04, for a total value of $1,741,200.00. Following the sale, the chairman owned 632,727 shares of the company's stock, valued at $36,723,475.08. The trade was a 4.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 71,921 shares of company stock valued at $4,120,613. 4.47% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rollins

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank Pictet & Cie Europe AG grew its stake in Rollins by 6.6% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 66,050 shares of the business services provider's stock valued at $3,061,000 after buying an additional 4,100 shares in the last quarter. Orion Portfolio Solutions LLC grew its stake in Rollins by 13.5% in the 4th quarter. Orion Portfolio Solutions LLC now owns 9,675 shares of the business services provider's stock valued at $448,000 after buying an additional 1,149 shares in the last quarter. O Shaughnessy Asset Management LLC grew its stake in Rollins by 31.5% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 16,612 shares of the business services provider's stock valued at $770,000 after buying an additional 3,977 shares in the last quarter. Franklin Resources Inc. grew its stake in Rollins by 23.0% in the 4th quarter. Franklin Resources Inc. now owns 213,928 shares of the business services provider's stock valued at $9,916,000 after buying an additional 39,985 shares in the last quarter. Finally, Headlands Technologies LLC grew its stake in Rollins by 425.1% in the 4th quarter. Headlands Technologies LLC now owns 1,402 shares of the business services provider's stock valued at $65,000 after buying an additional 1,135 shares in the last quarter. Hedge funds and other institutional investors own 51.79% of the company's stock.

Rollins Company Profile

Rollins, Inc, through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife.

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