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

Rollins, Inc. (NYSE:ROL)’s share price gapped down prior to trading 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.

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

Rollins Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 10th. Shareholders of record on Tuesday, November 12th will be issued a $0.165 dividend. The ex-dividend date is Tuesday, November 12th. This is a positive change 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 (DPR) is 63.83%.

Analyst Ratings Changes

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

Insiders Place Their Bets

In other news, insider Elizabeth B. Chandler sold 4,685 shares of the firm’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 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Rollins news, insider Elizabeth B. Chandler sold 4,685 shares of the company’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 directly owns 89,338 shares of the company’s stock, valued at approximately $4,533,010.12. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Elizabeth B. Chandler sold 4,686 shares of Rollins stock in a transaction dated Thursday, August 1st. The shares were sold at an average price of $47.82, for a total transaction of $224,084.52. Following the completion of the transaction, the insider now directly owns 95,023 shares of the company’s stock, valued at approximately $4,543,999.86. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 14,056 shares of company stock valued at $698,347 in the last three months. 4.69% of the stock is currently owned by corporate insiders.

Institutional Trading of Rollins

Hedge funds have recently made changes to their positions in the business. Quest Partners LLC bought a new stake in Rollins in the 2nd quarter valued at $33,000. Ridgewood Investments LLC acquired a new stake in shares of Rollins during the 2nd quarter worth about $34,000. Quent Capital LLC boosted its holdings in shares of Rollins by 43.9% during the 2nd quarter. Quent Capital LLC now owns 774 shares of the business services provider’s stock worth $38,000 after buying an additional 236 shares during the period. Whittier Trust Co. of Nevada Inc. grew its stake in Rollins by 10,233.3% in the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 930 shares of the business services provider’s stock valued at $45,000 after buying an additional 921 shares during the last quarter. Finally, Blue Trust Inc. raised its holdings in Rollins by 114.2% in the 2nd quarter. Blue Trust Inc. now owns 1,604 shares of the business services provider’s stock valued at $74,000 after acquiring an additional 855 shares during the period. 51.79% of the stock is owned by institutional investors and hedge funds.

Rollins Stock Performance

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’s fifty day simple moving average is $49.89 and its two-hundred day simple moving average is $48.13. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.72 and a current ratio of 0.78.

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.