Rollins, Inc. $ROL Stock: Riverbridge Partners LLC Trims Position

Riverbridge Partners LLC lowered its holdings in shares of Rollins, Inc. (NYSE:ROL) by 11.8% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 992,918 shares of the business services provider’s stock after selling 133,102 shares during the period. Riverbridge Partners LLC’s holdings in Rollins were worth $29,907,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Rollins in the second quarter valued at $1,204,334,000. State Street Corp raised its holdings in shares of Rollins by 3.7% in the second quarter. State Street Corp now owns 13,561,228 shares of the business services provider’s stock valued at $566,046,000 after buying an additional 488,046 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Rollins by 3.4% during the first quarter. Dimensional Fund Advisors LP now owns 2,858,888 shares of the business services provider’s stock worth $152,686,000 after buying an additional 94,116 shares during the period. Pictet Asset Management Holding SA boosted its stake in shares of Rollins by 10.7% during the third quarter. Pictet Asset Management Holding SA now owns 3,849,086 shares of the business services provider’s stock worth $115,974,000 after buying an additional 371,356 shares during the period. Finally, Bessemer Group Inc. boosted its stake in shares of Rollins by 73.3% during the first quarter. Bessemer Group Inc. now owns 1,879,120 shares of the business services provider’s stock worth $100,365,000 after buying an additional 794,722 shares during the period. 51.79% of the stock is owned by hedge funds and other institutional investors.

Rollins Stock Performance

Shares of ROL opened at $38.36 on Wednesday. The stock has a market capitalization of $18.34 billion, a P/E ratio of 33.69, a P/E/G ratio of 4.39 and a beta of 0.73. The company has a debt-to-equity ratio of 0.35, a quick ratio of 0.58 and a current ratio of 0.62. Rollins, Inc. has a 1 year low of $29.28 and a 1 year high of $66.14. The company’s fifty day moving average is $33.72 and its two-hundred day moving average is $46.12.

Rollins (NYSE:ROL) last released its earnings results on Wednesday, October 21st. The business services provider reported $0.34 EPS for the quarter, hitting the consensus estimate of $0.34. Rollins had a net margin of 13.19% and a return on equity of 39.43%. The company had revenue of $1.09 billion during the quarter, compared to analysts’ expectations of $1.11 billion. During the same quarter last year, the business earned $0.35 EPS. The business’s revenue was up 6.2% on a year-over-year basis. On average, sell-side analysts predict that Rollins, Inc. will post 1.14 earnings per share for the current year.

Rollins Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Tuesday, November 10th will be paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.1%. This is a positive change from Rollins’s previous quarterly dividend of $0.1825. The ex-dividend date is Tuesday, November 10th. Rollins’s dividend payout ratio (DPR) is presently 66.97%.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on ROL. Morgan Stanley lowered their price target on Rollins from $45.00 to $43.00 and set an “overweight” rating on the stock in a report on Tuesday, October 13th. JPMorgan Chase & Co. reduced their price objective on Rollins from $40.00 to $35.00 and set a “neutral” rating for the company in a research note on Tuesday, October 13th. UBS Group increased their price objective on Rollins from $36.00 to $37.00 and gave the stock a “neutral” rating in a research report on Friday, October 23rd. Canaccord Genuity Group set a $33.00 price objective on Rollins and gave the stock a “hold” rating in a research report on Friday, October 23rd. Finally, BNP Paribas Exane lowered their target price on Rollins from $44.00 to $35.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $40.56.

Rollins News Summary

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Citi upgraded the stock to Buy from Neutral and raised its price target to $49 from $32, a notable improvement in its outlook for Rollins. Citi upgrade coverage
• Neutral Sentiment: Quarterly results were mixed: Rollins matched consensus earnings per share at $0.34, while revenue of $1.09 billion fell short of the $1.11 billion analyst estimate. Revenue still grew 6.2% year over year. Earnings analysis
• Negative Sentiment: Wells Fargo remains cautious: It raised its target from $26 to $30 but maintained an Underweight rating, indicating the analyst still sees meaningful downside risk. Wells Fargo rating information
• Negative Sentiment: Higher Treasury yields may pressure valuations. The cited market commentary says yields near 5% are prompting investors to reprice stocks broadly, which could challenge higher-multiple companies such as Rollins. Market commentary on bond yields

Rollins Profile

Rollins, Inc. is a global provider of pest and termite control services for residential and commercial customers. Its services include inspections, prevention and treatment for common household and business pests, as well as termite protection, mosquito control and wildlife removal. The company operates through brands including Orkin, HomeTeam Pest Defense and Clark Pest Control. Founded in 1948, Rollins expanded into pest control with its 1964 acquisition of Orkin, which remains one of its best-known brands.