Rollins’ (ROL) Neutral Rating Reiterated at Bank of America

Bank of America reaffirmed their neutral rating on shares of Rollins (NYSE:ROL) in a research report released on Thursday morning, Marketbeat Ratings reports. They currently have a $35.00 price target on the business services provider’s stock, down from their previous price target of $55.00.

ROL has been the topic of several other research reports. Sanford C. Bernstein cut Rollins from an “outperform” rating to a “market perform” rating and lowered their price objective for the stock from $70.00 to $52.00 in a research report on Friday, May 29th. Loop Capital started coverage on shares of Rollins in a research report on Monday, April 13th. They issued a “hold” rating and a $56.00 target price for the company. Canaccord Genuity Group set a $51.00 price target on shares of Rollins and gave the company a “hold” rating in a research note on Friday, April 24th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $67.00 price target on shares of Rollins in a research report on Thursday, April 23rd. Finally, Wells Fargo & Company set a $46.00 price objective on shares of Rollins and gave the company an “equal weight” rating in a report on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $48.71.

Rollins Price Performance

Rollins stock opened at $38.59 on Thursday. The company has a market capitalization of $18.58 billion, a price-to-earnings ratio of 35.08, a PEG ratio of 2.40 and a beta of 0.75. The company has a current ratio of 0.63, a quick ratio of 0.59 and a debt-to-equity ratio of 0.34. Rollins has a 12 month low of $36.59 and a 12 month high of $66.14. The stock’s 50 day moving average is $46.11 and its 200-day moving average is $53.76.

Rollins (NYSE:ROL) last released 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). The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%.The business’s revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.30 earnings per share. Equities research analysts expect that Rollins will post 1.21 EPS for the current year.

Rollins Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a dividend of $0.1825 per share. This represents a $0.73 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Monday, August 10th. Rollins’s dividend payout ratio is presently 66.36%.

Institutional Trading of Rollins

Several large investors have recently modified their holdings of ROL. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Rollins by 5.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,812 shares of the business services provider’s stock valued at $1,663,000 after purchasing an additional 1,620 shares in the last quarter. Empowered Funds LLC lifted its position in Rollins by 16.7% during the first quarter. Empowered Funds LLC now owns 6,427 shares of the business services provider’s stock worth $347,000 after purchasing an additional 918 shares during the period. Woodline Partners LP grew its stake in Rollins by 40.7% during the first quarter. Woodline Partners LP now owns 23,728 shares of the business services provider’s stock worth $1,282,000 after buying an additional 6,859 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in Rollins by 75.8% during the first quarter. Geneos Wealth Management Inc. now owns 870 shares of the business services provider’s stock worth $47,000 after buying an additional 375 shares in the last quarter. Finally, First Trust Advisors LP increased its holdings in Rollins by 185.0% in the 2nd quarter. First Trust Advisors LP now owns 368,718 shares of the business services provider’s stock valued at $20,803,000 after buying an additional 239,361 shares during the period. 51.79% of the stock is owned by institutional investors and hedge funds.

More Rollins News

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Management said termite and ancillary services continued to post solid growth, and lead volumes improved toward late June and early July, which could support a recovery in coming quarters.
• Positive Sentiment: Several analysts still see upside from current levels despite trimming targets, including Piper Sandler maintaining an overweight rating and BNP Paribas Exane keeping a neutral view with a higher target than the stock’s recent trading level.
• Neutral Sentiment: Rollins has been described as balancing solid Q2 growth with a softer outlook, suggesting the quarter was mixed rather than uniformly negative.
• Neutral Sentiment: Ongoing media coverage around the earnings call and transcript is reinforcing investor focus on management’s commentary about demand trends and margin performance.
• Negative Sentiment: Rollins reported Q2 earnings of $0.32 per share, below the consensus estimate of $0.34, and revenue of about $1.08 billion also came in slightly short of expectations.
• Negative Sentiment: Analysts turned more cautious after the report, with JPMorgan reaffirming an underweight rating and sharply lowering its price target, while Bank of America also cut its target and kept a neutral stance.
• Negative Sentiment: Commentary around slower residential demand and a “downbeat” earnings release has added to the selloff, as the market appears to be recalibrating expectations after a period of high optimism.

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.