Rollins (NYSE:ROL) Given “Underweight” Rating at JPMorgan Chase & Co.

JPMorgan Chase & Co. reiterated their underweight rating on shares of Rollins (NYSE:ROL) in a report released on Friday morning, Marketbeat Ratings reports. They currently have a $45.00 target price on the business services provider’s stock, down from their prior target price of $70.00.

A number of other equities research analysts have also recently issued reports on the company. 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. UBS Group set a $50.00 target price on Rollins in a research note on Wednesday, July 15th. Weiss Ratings cut Rollins from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, June 26th. Royal Bank Of Canada downgraded Rollins from an “outperform” rating to a “sector perform” rating and reduced their price target for the company from $52.00 to $40.00 in a research note on Thursday. Finally, Loop Capital assumed coverage on Rollins in a report on Monday, April 13th. They issued a “hold” rating and a $56.00 price objective on the stock. One investment 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 issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $48.71.

Rollins Stock Performance

NYSE ROL opened at $38.59 on Friday. The stock has a market cap of $18.58 billion, a PE ratio of 35.08, a P/E/G ratio of 2.46 and a beta of 0.75. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.59 and a current ratio of 0.63. The firm has a 50-day moving average of $46.11 and a 200-day moving average of $53.76. Rollins has a 52-week low of $36.59 and a 52-week high of $66.14.

Rollins (NYSE:ROL) last announced its quarterly earnings results on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The firm’s quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter last year, the company posted $0.30 EPS. On average, sell-side analysts anticipate that Rollins will post 1.23 EPS for the current year.

Rollins Announces Dividend

The firm 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. The ex-dividend date of this dividend is Monday, August 10th. This represents a $0.73 annualized dividend and a dividend yield of 1.9%. Rollins’s dividend payout ratio (DPR) is currently 66.97%.

Institutional Investors Weigh In On Rollins

Institutional investors have recently made changes to their positions in the stock. DV Equities LLC bought a new position in Rollins during the 4th quarter worth $25,000. Cornerstone Planning Group LLC lifted its position in shares of Rollins by 528.4% during the 4th quarter. Cornerstone Planning Group LLC now owns 421 shares of the business services provider’s stock valued at $26,000 after acquiring an additional 354 shares during the period. Torren Management LLC acquired a new stake in shares of Rollins during the 4th quarter worth $36,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Rollins during the 4th quarter worth $43,000. Finally, Quarry LP increased its position in shares of Rollins by 155.2% in the fourth quarter. Quarry LP now owns 740 shares of the business services provider’s stock worth $44,000 after purchasing an additional 450 shares during the period. 51.79% of the stock is currently owned by institutional investors.

Rollins News Roundup

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.