Short Interest in Rollins, Inc. (NYSE:ROL) Declines By 23.7%

Key Points

• Short interest dropped 23.7% — short interest fell to 9,100,420 shares as of April 15 (about 2.0% of shares), with a days-to-cover ratio of 3.5.
• Q1 results met EPS and beat revenue — Rollins reported $0.24 EPS (in line with consensus) and revenue of $906.42M, up ~10.2% year-over-year.
• Dividend declared and insider activity — the company declared a $0.1825 quarterly dividend (annualized $0.73, ~1.3% yield; ex-dividend May 11), while insider Elizabeth B. Chandler sold 14,201 shares, cutting her holding by ~20%.

Rollins, Inc. (NYSE:ROL - Get Free Report) saw a significant drop in short interest in April. As of April 15th, there was short interest totaling 9,100,420 shares, a drop of 23.7% from the March 31st total of 11,931,852 shares. Approximately 2.0% of the shares of the company are short sold. Based on an average trading volume of 2,566,645 shares, the days-to-cover ratio is currently 3.5 days.

Rollins Price Performance

Shares of Rollins stock traded down $0.35 on Wednesday, reaching $55.39. The company's stock had a trading volume of 1,035,085 shares, compared to its average volume of 2,996,387. The company has a market capitalization of $26.67 billion, a P/E ratio of 50.72, a PEG ratio of 3.45 and a beta of 0.84. Rollins has a 52-week low of $52.32 and a 52-week high of $66.14. The stock has a 50-day moving average price of $56.01 and a 200-day moving average price of $58.64. The company has a quick ratio of 0.59, a current ratio of 0.65 and a debt-to-equity ratio of 0.35.

Rollins (NYSE:ROL - Get Free Report) last issued its quarterly earnings results on Wednesday, April 22nd. The business services provider reported $0.24 EPS for the quarter, hitting the consensus estimate of $0.24. Rollins had a return on equity of 38.37% and a net margin of 13.77%.The firm had revenue of $906.42 million during the quarter, compared to analysts' expectations of $895.17 million. During the same period in the previous year, the business earned $0.22 earnings per share. The firm's revenue for the quarter was up 10.2% on a year-over-year basis. Analysts expect that Rollins will post 1.24 EPS for the current year.

Rollins Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Monday, May 11th will be given a dividend of $0.1825 per share. This represents a $0.73 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Monday, May 11th. Rollins's payout ratio is presently 66.97%.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ROL. Wells Fargo & Company set a $56.00 price objective on Rollins and gave the company an "equal weight" rating in a research report on Thursday, February 12th. The Goldman Sachs Group restated a "buy" rating and issued a $67.00 price objective on shares of Rollins in a research report on Thursday, April 23rd. UBS Group boosted their price objective on Rollins from $58.00 to $61.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Loop Capital began coverage on Rollins in a research report on Monday, April 13th. They issued a "hold" rating and a $56.00 price objective for the company. Finally, Royal Bank Of Canada set a $67.00 price objective on Rollins and gave the company an "outperform" rating in a research report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Rollins currently has an average rating of "Moderate Buy" and an average price target of $65.27.

Insiders Place Their Bets

In related news, insider Elizabeth B. Chandler sold 14,201 shares of Rollins stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $59.36, for a total transaction of $842,971.36. Following the completion of the transaction, the insider directly owned 55,977 shares in the company, valued at approximately $3,322,794.72. This trade represents a 20.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 5.77% of the company's stock.

Institutional Trading of Rollins

Several large investors have recently made changes to their positions in ROL. DV Equities LLC purchased a new stake in shares of Rollins during the fourth quarter worth approximately $25,000. Cornerstone Planning Group LLC increased its position in shares of 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 purchasing an additional 354 shares in the last quarter. Board of the Pension Protection Fund purchased a new stake in shares of Rollins during the fourth quarter worth approximately $30,000. Root Financial Partners LLC purchased a new stake in shares of Rollins during the third quarter worth approximately $31,000. Finally, Torren Management LLC purchased a new stake in shares of Rollins during the fourth quarter worth approximately $36,000. 51.79% of the stock is currently owned by hedge funds and other institutional investors.

Rollins News Roundup

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Rothschild & Co Redburn upgraded ROL from "hold" to "strong-buy," a formal analyst endorsement that can attract flows from institutional and momentum investors. Rothschild upgrade reported by Zacks
• Positive Sentiment: Momentum/quality screens highlight ROL as a top-ranked momentum stock and an attractive investment case (growth in recurring revenue, strong ROE). Those stories can boost demand from retail and quant funds. Rollins is a top-ranked momentum stock (Zacks) What Makes Rollins an Attractive Investment? (Yahoo)
• Neutral Sentiment: Q1 results (Apr. 22) met EPS consensus and beat revenue; revenue rose ~10% year-over-year — supportive for the long-term story but not an outright catalyst for a re-rating by itself.
• Neutral Sentiment: Analyst commentary: a recent Seeking Alpha piece acknowledges margin declines but remains confident in Rollins' niche leadership — useful context for investors assessing operational risks. Seeking Alpha: margin discussion
• Neutral Sentiment: Media noise from unrelated stories using the "Rollins" name (e.g., WWE coverage of Seth Rollins, and US Secretary Brooke Rollins’ agriculture events) may increase search/attention but do not affect the pest-control company's fundamentals. Seth Rollins (WWE) coverage Brooke Rollins / agriculture coverage
• Negative Sentiment: Short-term technicals and liquidity/valuation concerns: the stock is trading below its 50- and 200-day moving averages, volume is below average, the P/E is elevated (~50.7) and the current ratio (~0.65) is low — factors that can pressure the share price if growth or margins disappoint.

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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