Rollins (NYSE:ROL) Shares Gap Down Following Weak Earnings

Rollins, Inc. (NYSE:ROL) gapped down before the market opened on Thursday following a weaker than expected 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 traded.

The business services provider reported $0.29 EPS for the quarter, missing analysts’ consensus estimates of $0.30 by ($0.01). Rollins had a net margin of 14.23% and a return on equity of 40.10%. The business had revenue of $916.27 million for the quarter, compared to analysts’ expectations of $911.15 million. During the same period in the previous year, the business posted $0.28 earnings per share. The business’s revenue was up 9.0% compared to the same quarter last year.

Rollins Increases Dividend

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

Analyst Ratings Changes

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

Insider Activity at Rollins

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

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. First Trust Direct Indexing L.P. increased its position in shares of Rollins by 5.3% during the third quarter. First Trust Direct Indexing L.P. now owns 9,984 shares of the business services provider’s stock valued at $505,000 after buying an additional 502 shares during the period. Pallas Capital Advisors LLC bought a new position in shares of Rollins in the third quarter valued at approximately $204,000. State of Alaska Department of Revenue grew its stake in Rollins by 1.7% during the third quarter. State of Alaska Department of Revenue now owns 133,174 shares of the business services provider’s stock valued at $6,735,000 after acquiring an additional 2,210 shares in the last quarter. Benedict Financial Advisors Inc. increased its holdings in Rollins by 1.7% during the 3rd quarter. Benedict Financial Advisors Inc. now owns 49,739 shares of the business services provider’s stock worth $2,516,000 after acquiring an additional 824 shares during the period. Finally, Forsta AP Fonden lifted its stake in Rollins by 10.3% in the 3rd quarter. Forsta AP Fonden now owns 55,900 shares of the business services provider’s stock worth $2,827,000 after purchasing an additional 5,200 shares in the last quarter. Institutional investors own 51.79% of the company’s stock.

Rollins Stock Performance

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

Rollins Company Profile

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.