BNP Paribas Exane Cuts Rollins (NYSE:ROL) Price Target to $44.00

Rollins (NYSE:ROL) had its target price cut by BNP Paribas Exane from $63.00 to $44.00 in a research note issued to investors on Friday,Benzinga reports. They currently have a neutral rating on the business services provider’s stock.

Several other brokerages have also recently weighed in on ROL. Citigroup initiated coverage on Rollins in a research note on Wednesday, July 15th. They set a “neutral” rating and a $46.00 target price for the company. Canaccord Genuity Group set a $45.00 price target on shares of Rollins in a report on Thursday. UBS Group restated a “neutral” rating and set a $43.00 price objective on shares of Rollins in a research report on Friday. Sanford C. Bernstein cut shares of 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 note on Friday, May 29th. Finally, Morgan Stanley dropped their target price on shares of Rollins from $70.00 to $65.00 and set an “overweight” rating on the stock in a report on Wednesday, July 8th. One investment 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 given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $48.71.

Rollins Stock Performance

ROL opened at $38.59 on Friday. The company has a market capitalization of $18.57 billion, a price-to-earnings ratio of 35.08, a price-to-earnings-growth ratio of 4.14 and a beta of 0.75. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58. Rollins has a 1-year low of $36.59 and a 1-year high of $66.14. The business has a 50 day moving average price of $46.11 and a two-hundred day moving average price of $53.72.

Rollins (NYSE:ROL) last issued its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.02). Rollins had a net margin of 13.55% and a return on equity of 38.81%. The firm had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.09 billion. During the same quarter last year, the business posted $0.30 earnings per share. The firm’s revenue for the quarter was up 7.9% compared to the same quarter last year. Research analysts predict that Rollins will post 1.21 EPS for the current fiscal 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 issued a dividend of $0.1825 per share. This represents a $0.73 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend is Monday, August 10th. Rollins’s dividend payout ratio is currently 66.36%.

Hedge Funds Weigh In On Rollins

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. LRI Investments LLC raised its holdings in Rollins by 8.7% during the 4th quarter. LRI Investments LLC now owns 2,293 shares of the business services provider’s stock worth $138,000 after buying an additional 183 shares during the period. Sequoia Financial Advisors LLC lifted its stake in Rollins by 1.1% during the first quarter. Sequoia Financial Advisors LLC now owns 16,365 shares of the business services provider’s stock valued at $874,000 after buying an additional 183 shares in the last quarter. IFM Investors Pty Ltd boosted its holdings in shares of Rollins by 0.3% in the first quarter. IFM Investors Pty Ltd now owns 57,895 shares of the business services provider’s stock worth $3,092,000 after buying an additional 185 shares during the period. New Mexico Educational Retirement Board boosted its holdings in shares of Rollins by 1.6% in the fourth quarter. New Mexico Educational Retirement Board now owns 12,875 shares of the business services provider’s stock worth $773,000 after buying an additional 200 shares during the period. Finally, Inspire Investing LLC increased its position in shares of Rollins by 3.9% in the fourth quarter. Inspire Investing LLC now owns 5,457 shares of the business services provider’s stock worth $328,000 after acquiring an additional 203 shares in the last quarter. Institutional investors and hedge funds own 51.79% of the company’s stock.

Rollins News Summary

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.