Rollins (NYSE:ROL) Shares Gap Down on Disappointing Earnings

Rollins, Inc. (NYSE:ROL)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $49.75, but opened at $47.61. Rollins shares last traded at $47.46, with a volume of 594,989 shares trading hands.

The business services provider reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.01). Rollins had a return on equity of 40.10% and a net margin of 14.23%. The company had revenue of $916.27 million for the quarter, compared to the consensus estimate of $911.15 million. During the same period in the prior year, the business earned $0.28 earnings per share. The firm’s revenue for the quarter was up 9.0% on a year-over-year basis.

Rollins Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 10th. Investors of record on Tuesday, November 12th will be issued a $0.165 dividend. The ex-dividend date of this dividend is Tuesday, November 12th. This is a boost from Rollins’s previous quarterly dividend of $0.15. This represents a $0.66 annualized dividend and a yield of 1.42%. Rollins’s dividend payout ratio is presently 63.83%.

Analysts Set New Price Targets

ROL has been the topic of a number of recent analyst reports. Wells Fargo & Company boosted their price target on shares of Rollins from $54.00 to $56.00 and gave the stock an “overweight” rating in a research report on Tuesday, October 15th. StockNews.com downgraded Rollins from a “buy” rating to a “hold” rating in a report on Thursday. Finally, Royal Bank of Canada reissued an “outperform” rating and issued a $52.00 price objective on shares of Rollins in a research note on Thursday, July 25th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, Rollins currently has an average rating of “Moderate Buy” and a consensus price target of $49.80.

Insider Activity

In related news, insider Elizabeth B. Chandler sold 4,685 shares of the business’s stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $50.74, for a total value of $237,716.90. Following the completion of the sale, the insider now directly owns 89,338 shares of the company’s stock, valued at $4,533,010.12. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. In related news, insider Elizabeth B. Chandler sold 4,685 shares of Rollins stock in a transaction on Tuesday, September 3rd. The shares were sold at an average price of $50.74, for a total value of $237,716.90. Following the completion of the sale, the insider now owns 89,338 shares of the company’s stock, valued at approximately $4,533,010.12. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Elizabeth B. Chandler sold 4,686 shares of the business’s stock in a transaction on Thursday, August 1st. The shares were sold at an average price of $47.82, for a total transaction of $224,084.52. Following the sale, the insider now owns 95,023 shares of the company’s stock, valued at $4,543,999.86. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 14,056 shares of company stock worth $698,347. Company insiders own 4.69% of the company’s stock.

Hedge Funds Weigh In On Rollins

Several large investors have recently added to or reduced their stakes in ROL. Wellington Management Group LLP increased its holdings in Rollins by 31.8% during the 4th quarter. Wellington Management Group LLP now owns 34,783 shares of the business services provider’s stock worth $1,519,000 after purchasing an additional 8,384 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in Rollins by 25.5% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 92,069 shares of the business services provider’s stock worth $4,260,000 after buying an additional 18,688 shares in the last quarter. Azzad Asset Management Inc. ADV raised its position in Rollins by 36.8% in the 1st quarter. Azzad Asset Management Inc. ADV now owns 46,555 shares of the business services provider’s stock valued at $2,154,000 after buying an additional 12,526 shares during the last quarter. Dudley & Shanley Inc. lifted its stake in Rollins by 1.6% during the 1st quarter. Dudley & Shanley Inc. now owns 443,135 shares of the business services provider’s stock valued at $20,504,000 after acquiring an additional 6,950 shares in the last quarter. Finally, First Trust Direct Indexing L.P. boosted its holdings in Rollins by 7.3% during the 1st quarter. First Trust Direct Indexing L.P. now owns 7,451 shares of the business services provider’s stock worth $345,000 after acquiring an additional 510 shares during the last quarter. Institutional investors own 51.79% of the company’s stock.

Rollins Stock Up 0.1 %

The company has a current ratio of 0.78, a quick ratio of 0.72 and a debt-to-equity ratio of 0.41. The stock has a market capitalization of $22.54 billion, a PE ratio of 49.51 and a beta of 0.70. The stock’s fifty day simple moving average is $49.89 and its 200-day simple moving average is $48.13.

About Rollins

Rollins, Inc, through its subsidiaries, provides pest and wildlife control services to residential and commercial customers in the United States and internationally. The company offers pest control services to residential properties protecting from common pests, including rodents, insects, and wildlife.