Rollins (NYSE:ROL) Sets New 1-Year Low - Should You Sell?

Key Points

• Rollins shares fell to a new 52-week low of $36.29, trading below both the 50-day and 200-day moving averages amid continued weakness.
• Analysts have an overall “Hold” rating with an average price target of $48.71, although several firms recently lowered targets and Bank of America set a $35 target.
• Quarterly earnings and revenue slightly missed expectations, but revenue still grew 7.9% year over year; Rollins also announced a quarterly dividend of $0.1825 per share, representing a 2.0% yield.

Rollins, Inc. (NYSE:ROL - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday . The stock traded as low as $36.29 and last traded at $36.38, with a volume of 327923 shares changing hands. The stock had previously closed at $37.01.

Analysts Set New Price Targets

Several analysts have weighed in on ROL shares. Citigroup assumed coverage on shares of Rollins in a research report on Wednesday, July 15th. They set a "neutral" rating and a $46.00 target price on the stock. Weiss Ratings cut shares of Rollins from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. UBS Group reiterated a "neutral" rating and set a $43.00 price objective (down from $50.00) on shares of Rollins in a research note on Friday, July 24th. Barclays set a $45.00 price objective on shares of Rollins and gave the company an "overweight" rating in a report on Friday, July 24th. Finally, Bank of America reissued a "neutral" rating and issued a $35.00 target price (down from $55.00) on shares of Rollins in a research report on Thursday, July 23rd. One investment 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 assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $48.71.

Rollins Trading Down 0.9%

The stock has a 50-day moving average of $42.95 and a 200 day moving average of $51.73. The stock has a market cap of $17.65 billion, a PE ratio of 33.35, a price-to-earnings-growth ratio of 4.07 and a beta of 0.75. The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34.

Rollins (NYSE:ROL - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $1.09 billion. During the same quarter last year, the company posted $0.30 EPS. Rollins's quarterly revenue was up 7.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that Rollins, Inc. will post 1.19 earnings per share 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 issued a dividend of $0.1825 per share. This represents a $0.73 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Monday, August 10th. Rollins's dividend payout ratio (DPR) is 66.36%.

Institutional Investors Weigh In On Rollins

Several hedge funds have recently added to or reduced their stakes in the business. National Pension Service grew its holdings 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 buying an additional 29,758 shares in the last quarter. Dudley & Shanley Inc. raised its holdings in shares of Rollins by 8.8% during the 2nd quarter. Dudley & Shanley Inc. now owns 495,655 shares of the business services provider's stock worth $20,689,000 after acquiring an additional 39,925 shares during the period. USS Investment Management Ltd boosted its position 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 acquiring an additional 1,123,237 shares during the last quarter. Public Employees Retirement System of Ohio boosted its position in shares of Rollins by 16.8% during the 1st quarter. Public Employees Retirement System of Ohio now owns 216,278 shares of the business services provider's stock valued at $11,551,000 after acquiring an additional 31,173 shares during the last quarter. Finally, Bessemer Group Inc. grew its holdings in shares of Rollins by 73.3% in the first quarter. Bessemer Group Inc. now owns 1,879,120 shares of the business services provider's stock valued at $100,365,000 after purchasing an additional 794,722 shares during the period. 51.79% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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