Rollins (NYSE:ROL) Earns Underweight Rating from JPMorgan Chase & Co.

Rollins (NYSE:ROL)‘s stock had its “underweight” rating reaffirmed by investment analysts at JPMorgan Chase & Co. in a research note issued on Friday, Marketbeat.com reports. They currently have a $45.00 price target on the business services provider’s stock, down from their previous price target of $70.00. JPMorgan Chase & Co.‘s target price points to a potential upside of 16.61% from the stock’s previous close.

A number of other equities research analysts have also issued reports on ROL. Loop Capital assumed coverage on Rollins in a research note on Monday, April 13th. They issued a “hold” rating and a $56.00 price target for the company. Canaccord Genuity Group set a $45.00 price objective on Rollins in a research report on Thursday. Royal Bank Of Canada lowered Rollins from an “outperform” rating to a “sector perform” rating and dropped their price objective for the stock from $52.00 to $40.00 in a research note on Thursday. Wells Fargo & Company cut Rollins from an “overweight” rating to an “underweight” rating and cut their target price for the stock from $46.00 to $32.00 in a research report on Friday. Finally, Bank of America reissued a “neutral” rating and set a $35.00 target price (down from $55.00) on shares of Rollins in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Rollins presently has a consensus rating of “Hold” and a consensus price target of $48.71.

Rollins Stock Performance

ROL opened at $38.59 on Friday. The company has a 50 day simple moving average of $46.11 and a two-hundred day simple moving average of $53.76. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.59. The firm has a market cap of $18.58 billion, a P/E ratio of 35.08, a PEG ratio of 2.40 and a beta of 0.75. Rollins has a 1-year low of $36.59 and a 1-year high of $66.14.

Rollins (NYSE:ROL) last announced its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 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 the consensus estimate of $1.09 billion. During the same quarter in the previous year, the business earned $0.30 earnings per share. The firm’s revenue for the quarter was up 7.9% on a year-over-year basis. Equities analysts forecast that Rollins will post 1.21 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ROL. Norges Bank bought a new stake in shares of Rollins in the fourth quarter worth about $244,669,000. Pictet Asset Management Holding SA grew its holdings in Rollins by 188.2% during 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 buying an additional 1,899,515 shares in the last quarter. Vanguard Group Inc. grew its holdings in Rollins by 4.3% during the 4th quarter. Vanguard Group Inc. now owns 38,282,523 shares of the business services provider’s stock valued at $2,297,717,000 after buying an additional 1,562,241 shares in the last quarter. USS Investment Management Ltd increased its stake in Rollins by 55.9% in 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 acquiring an additional 1,123,237 shares during the last quarter. Finally, Bessemer Group Inc. increased its stake in Rollins by 11,772.1% in the 4th quarter. Bessemer Group Inc. now owns 1,084,398 shares of the business services provider’s stock worth $65,086,000 after acquiring an additional 1,075,264 shares during 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.

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.