Bank of America Reiterates “Neutral” Rating for Rollins (NYSE:ROL)

Rollins (NYSE:ROL)‘s stock had its “neutral” rating restated by research analysts at Bank of America in a note issued to investors on Thursday, MarketBeat Ratings reports. They currently have a $35.00 price objective on the business services provider’s stock, down from their prior price objective of $55.00. Bank of America‘s price objective would indicate a potential downside of 9.30% from the stock’s current price.

Several other equities analysts also recently issued reports on ROL. Wells Fargo & Company set a $46.00 price objective on shares of Rollins and gave the company an “equal weight” rating in a research note on Thursday, June 25th. Morgan Stanley cut 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. Canaccord Genuity Group set a $51.00 price objective on shares of Rollins and gave the stock a “hold” rating in a research report on Friday, April 24th. Citigroup began coverage on Rollins in a research note on Wednesday, July 15th. They set a “neutral” rating and a $46.00 price objective for the company. Finally, Sanford C. Bernstein lowered Rollins from an “outperform” rating to a “market perform” rating and dropped their target price for the company from $70.00 to $52.00 in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Rollins currently has an average rating of “Hold” and a consensus target price of $48.71.

Rollins Stock Down 2.2%

ROL stock opened at $38.59 on Thursday. The stock has a market cap of $18.58 billion, a P/E ratio of 35.08, a PEG ratio of 2.46 and a beta of 0.75. The company has a current ratio of 0.63, a quick ratio of 0.59 and a debt-to-equity ratio of 0.34. Rollins has a twelve month low of $36.59 and a twelve month high of $66.14. The company’s 50 day moving average is $46.11 and its two-hundred day moving average is $53.76.

Rollins (NYSE:ROL) last issued its 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). 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 company’s quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.30 EPS. Research analysts expect that Rollins will post 1.23 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ROL. DV Equities LLC acquired a new stake in Rollins in the fourth quarter valued at $25,000. Cornerstone Planning Group LLC increased its holdings in Rollins by 528.4% in the fourth quarter. Cornerstone Planning Group LLC now owns 421 shares of the business services provider’s stock valued at $26,000 after buying an additional 354 shares in the last quarter. Torren Management LLC purchased a new stake in shares of Rollins during the 4th quarter worth approximately $36,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Rollins in the 4th quarter worth approximately $43,000. Finally, Quarry LP grew its holdings in shares of Rollins by 155.2% in the 4th quarter. Quarry LP now owns 740 shares of the business services provider’s stock worth $44,000 after acquiring an additional 450 shares during the period. Hedge funds and other institutional investors own 51.79% of the company’s stock.

More Rollins News

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.