Rollins’ (ROL) “Underweight” Rating Reiterated at JPMorgan Chase & Co.

JPMorgan Chase & Co. reiterated their underweight rating on shares of Rollins (NYSE:ROL) in a research note released on Friday morning, MarketBeat reports. The firm currently has a $45.00 price target on the business services provider’s stock, down from their prior price target of $70.00.

Several other equities research analysts have also recently weighed in on ROL. Wells Fargo & Company cut Rollins from an “overweight” rating to an “underweight” rating and reduced their price objective for the company from $46.00 to $32.00 in a research report on Friday. Royal Bank Of Canada cut shares of Rollins from an “outperform” rating to a “sector perform” rating and cut their target price for the company from $52.00 to $40.00 in a research note on Thursday. Canaccord Genuity Group set a $45.00 price target on shares of Rollins in a report on Thursday. Rothschild & Co Redburn set a $66.00 price target on shares of Rollins and gave the stock a “buy” rating in a research report on Monday, April 27th. Finally, The Goldman Sachs Group restated a “buy” rating and set a $67.00 price objective on shares of Rollins in a report on Thursday, April 23rd. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $48.71.

Rollins Trading Up 0.1%

Rollins stock opened at $38.59 on Friday. Rollins has a 52 week low of $36.59 and a 52 week high of $66.14. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.58 and a current ratio of 0.63. The firm has a market capitalization of $18.57 billion, a PE ratio of 35.08, a PEG ratio of 4.14 and a beta of 0.75. The business’s 50-day simple moving average is $46.11 and its 200-day simple moving average is $53.72.

Rollins (NYSE:ROL) last announced its 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 business had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. Rollins’s revenue for the quarter was up 7.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.30 EPS. Equities research analysts forecast that Rollins will post 1.21 earnings per share for the current year.

Rollins Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Monday, August 10th will be issued a $0.1825 dividend. This represents a $0.73 annualized dividend and a yield of 1.9%. The ex-dividend date of this dividend is Monday, August 10th. Rollins’s payout ratio is 66.36%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Rollins during the fourth quarter worth $244,669,000. Pictet Asset Management Holding SA boosted its stake in shares of Rollins by 188.2% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,908,818 shares of the business services provider’s stock valued at $155,335,000 after purchasing an additional 1,899,515 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Rollins by 4.3% in the 4th quarter. Vanguard Group Inc. now owns 38,282,523 shares of the business services provider’s stock worth $2,297,717,000 after purchasing an additional 1,562,241 shares during the last quarter. USS Investment Management Ltd increased 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 worth $167,260,000 after purchasing an additional 1,123,237 shares in the last quarter. Finally, Bessemer Group Inc. increased its position in shares of Rollins by 11,772.1% during the 4th quarter. Bessemer Group Inc. now owns 1,084,398 shares of the business services provider’s stock worth $65,086,000 after purchasing an additional 1,075,264 shares in the last quarter. Institutional investors own 51.79% of the company’s stock.

Trending Headlines about Rollins

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.

Rollins Company Profile

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.