Rollins (NYSE:ROL) Downgraded by Wall Street Zen to Sell

Wall Street Zen downgraded shares of Rollins (NYSE:ROL) from a hold rating to a sell rating in a research note released on Saturday morning,Wall Street Zen reports.

A number of other research analysts also recently issued reports on ROL. Citigroup reduced their price target on Rollins from $46.00 to $32.00 and set a “neutral” rating on the stock in a report on Thursday, October 15th. Raymond James Financial set a $35.00 price objective on Rollins in a research report on Thursday, July 23rd. Sanford C. Bernstein reduced their target price on Rollins from $42.00 to $35.00 and set a “market perform” rating on the stock in a research note on Monday, October 19th. Bank of America downgraded Rollins from a “buy” rating to a “neutral” rating and reduced their price target for the company from $55.00 to $35.00 in a report on Thursday, July 23rd. Finally, Morgan Stanley dropped their price target on shares of Rollins from $45.00 to $43.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 13th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $39.25.

Rollins Price Performance

ROL stock opened at $37.96 on Friday. The stock has a market capitalization of $18.15 billion, a price-to-earnings ratio of 34.83, a PEG ratio of 4.30 and a beta of 0.73. The firm’s 50-day moving average price is $33.63 and its two-hundred day moving average price is $46.37. The company has a current ratio of 0.62, a quick ratio of 0.58 and a debt-to-equity ratio of 0.35. Rollins has a 12-month low of $29.28 and a 12-month high of $66.14.

Rollins (NYSE:ROL) last posted its earnings results on Wednesday, October 21st. The business services provider reported $0.34 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.34. The company had revenue of $1.09 billion during the quarter, compared to analyst estimates of $1.11 billion. Rollins had a net margin of 13.19% and a return on equity of 39.43%. Rollins’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the prior year, the business posted $0.35 earnings per share. As a group, equities analysts predict that Rollins will post 1.14 earnings per share for the current year.

Rollins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.1%. This is an increase from Rollins’s previous quarterly dividend of $0.1825. The ex-dividend date of this dividend is Tuesday, November 10th. Rollins’s payout ratio is 66.97%.

Hedge Funds Weigh In On Rollins

A number of hedge funds have recently added to or reduced their stakes in the company. Sequoia Financial Advisors LLC grew its position in Rollins by 1.1% during the 1st quarter. Sequoia Financial Advisors LLC now owns 16,365 shares of the business services provider’s stock worth $874,000 after purchasing an additional 183 shares during the last quarter. Sterling Group Wealth Management LLC raised its holdings in shares of Rollins by 6.1% in the first quarter. Sterling Group Wealth Management LLC now owns 4,106 shares of the business services provider’s stock valued at $219,000 after buying an additional 235 shares during the last quarter. Gallacher Capital Management LLC raised its holdings in shares of Rollins by 5.6% in the first quarter. Gallacher Capital Management LLC now owns 5,087 shares of the business services provider’s stock valued at $272,000 after buying an additional 268 shares during the last quarter. Raiffeisen Bank International AG raised its holdings in shares of Rollins by 73.5% in the second quarter. Raiffeisen Bank International AG now owns 642 shares of the business services provider’s stock valued at $27,000 after buying an additional 272 shares during the last quarter. Finally, Groupama Asset Managment boosted its stake in shares of Rollins by 4.8% during the first quarter. Groupama Asset Managment now owns 7,106 shares of the business services provider’s stock worth $380,000 after buying an additional 325 shares during the period. 51.79% of the stock is currently owned by hedge funds and other institutional investors.

About Rollins

Rollins, Inc is a global provider of pest and termite control services for residential and commercial customers. Its services include inspections, prevention and treatment for common household and business pests, as well as termite protection, mosquito control and wildlife removal.

The company operates through brands including Orkin, HomeTeam Pest Defense and Clark Pest Control. Founded in 1948, Rollins expanded into pest control with its 1964 acquisition of Orkin, which remains one of its best-known brands.

Based in Atlanta, Georgia, Rollins serves customers across the United States and in international markets.