Piper Sandler Cuts Rollins (NYSE:ROL) Price Target to $46.00

Rollins (NYSE:ROL) had its price objective lowered by Piper Sandler from $72.00 to $46.00 in a research report sent to investors on Friday,Benzinga reports. The brokerage currently has an overweight rating on the business services provider’s stock.

A number of other analysts also recently weighed in on the company. Royal Bank Of Canada downgraded Rollins from an “outperform” rating to a “sector perform” rating and dropped their target price for the stock from $52.00 to $40.00 in a research report on Thursday. Morgan Stanley reduced their price target on shares of Rollins from $70.00 to $65.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 8th. Loop Capital initiated coverage on shares of Rollins in a report on Monday, April 13th. They issued a “hold” rating and a $56.00 price objective for the company. Wells Fargo & Company lowered shares of Rollins from an “overweight” rating to an “underweight” rating and lowered their price objective for the stock from $46.00 to $32.00 in a report on Friday. Finally, Citigroup started coverage on shares of Rollins in a report on Wednesday, July 15th. They set a “neutral” rating and a $46.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $48.71.

Rollins Trading Up 0.1%

NYSE ROL opened at $38.59 on Friday. The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34. The stock’s 50-day simple moving average is $46.11 and its two-hundred day simple moving average is $53.72. Rollins has a twelve month low of $36.59 and a twelve month high of $66.14. The company has a market capitalization of $18.57 billion, a price-to-earnings ratio of 35.08, a PEG ratio of 4.14 and a beta of 0.75.

Rollins (NYSE:ROL) last posted its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). The firm had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $1.09 billion. Rollins had a return on equity of 38.81% and a net margin of 13.55%.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 posted $0.30 earnings per share. Research analysts forecast that Rollins will post 1.21 EPS for the current fiscal year.

Rollins Announces Dividend

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

Hedge Funds Weigh In On Rollins

A number of large investors have recently bought and sold shares of the stock. Norges Bank purchased a new stake in shares of Rollins during the fourth quarter valued at approximately $244,669,000. Pictet Asset Management Holding SA increased its stake in shares of Rollins by 188.2% in the first quarter. Pictet Asset Management Holding SA now owns 2,908,818 shares of the business services provider’s stock worth $155,335,000 after buying an additional 1,899,515 shares during the period. Vanguard Group Inc. increased its stake in shares of Rollins by 4.3% in the fourth quarter. Vanguard Group Inc. now owns 38,282,523 shares of the business services provider’s stock worth $2,297,717,000 after buying an additional 1,562,241 shares during the period. USS Investment Management Ltd raised its holdings in 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 valued at $167,260,000 after buying an additional 1,123,237 shares during the last quarter. Finally, Bessemer Group Inc. raised its holdings in 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 valued at $65,086,000 after buying an additional 1,075,264 shares during the last quarter. 51.79% of the stock is owned by hedge funds and other institutional investors.

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.