Value Hunters: Look To Rollins Inc. (NYSE: ROL)

FIVE Stock
FIVE Stock

T. Rowe Price Associates, Inc. (I. recently announced the acquisition of new stake in Rollins Inc. (NYSE:ROL). The institutional investor has increased its shareholding in the Consumer Cyclical company by 3.73% to 13.6 million shares with purchase of 0.49 million shares. This fresh investment now brings its stake to 4.15% valued currently at $568.63 million. In addition, BlackRock Fund Advisors raised its holdings by 0.34 million to 8.27 million shares. And APG Asset Management NV has lifted its position by 7.00% or 0.49 million shares – to 7.48 million shares.

With over 1.23 million Rollins Inc. (ROL) shares trading Thursday and a closing price of $45.79 on the day, the dollar volume was approximately $56.36 million. The shares have shown a positive weekly performance of 7.06% and its price on 07/09/20 gained nearly 1.85%. Currently, there are 327.68M common shares owned by the public and among those 141.81M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 4 analysts who have offered their price forecasts for ROL have a consensus price objective of $35.67. The analysts have set the share’s price value over the next 12 months at a high of $39.00 and a low of $30.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Rollins Inc. stock is 2.50 for the next 12 months. The average price target is -28.37% below its last price level and a downside to the estimated low will see the stock lose -52.63% over that period. But an upside of -17.41% will see the stock hit the forecast high price target while mean target price for the stock is $38.00.

Insiders at the company have transacted a total of 29 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 6 of these insider trades were purchases, accounting for 152,741 shares. Insider sales of the common stock occurred on 23 occasions, with total insider shares sold totaling 416,963 shares.

The top 3 mutual fund holders in Rollins Inc. are T Rowe Price New Horizons Fund, Stichting Pensioenfonds ABP (Glob, and Vanguard Total Stock Market Index. T Rowe Price New Horizons Fund owns 9.69 million shares of the company’s stock, all valued at over $404.86 million. The company bought an additional 0.38 million shares recently to bring their total holdings to about 2.96% of the shares outstanding. Stichting Pensioenfonds ABP (Glob bought 2.61 million shares to see its total holdings expand to 6.23 million shares valued at over $260.35 million and representing 1.90% of the shares outstanding. Vanguard Total Stock Market Index sold 34550.0 shares to bring its total holdings to over 4.23 million shares at a value of $176.97 million. Vanguard Total Stock Market Index now owns shares totaling to 1.29% of the shares outstanding.

Shares of Rollins Inc. (NYSE: ROL) opened at $44.97, up $0.01 from a prior closing price of $44.96. However, the script later closed the day at $45.79, up 1.85%. The company’s stock has a 5-day price change of 7.06% and 27.51% over the past three months. ROL shares are trading 38.09% year to date (YTD), with the 12-month market performance up to 23.15% higher. It has a 12-month low price of $30.72 and touched a high of $46.95 over the same period. Currently, 1.23 million shares have been traded, compared to an average intraday trading volume of 1.53 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 7.90%, 10.00%, and 21.79% respectively.

Institutional ownership of Rollins Inc. (NYSE: ROL) shares accounts for 43.50% of the company’s 327.68M shares outstanding. Mutual fund holders own 24.83%, while other institutional holders and individual stakeholders account for 56.52% and 17.64% respectively.

It has a market capitalization of $14.91B and a beta (3y monthly) value of 0.42. The stock’s trailing 12-month PE ratio is 74.46, while the earnings-per-share (ttm) stands at $0.62. The company has a PEG of 9.08 and a Quick Ratio of 0.70 with the debt-to-equity ratio at 0.40. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.23% over the week and 2.63% over the month.

Analysts forecast that Rollins Inc. (ROL) will achieve an EPS of $0.17 for the current quarter, $0.21 for the next quarter and $0.8 for 2021. The lowest estimate earnings-per-share for the quarter is $0.16 while analysts give the company a high EPS estimate of $0.2. Comparatively, EPS for the current quarter was $0.2 a year ago. Earnings per share for the fiscal year are expected to decrease by -13.10%, and 18.98% over the next financial year. EPS should grow at an annualized rate of 8.20% over the next five years, compared to 8.10% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Rollins Inc. (ROL) as a “Moderate Buy” at a consensus score of 2.50. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ROL, a number of firms have released research notes about the stock. Jefferies stated their Hold rating for the stock in a research note on November 22, 2019. Stifel coverage for the Rollins Inc. (ROL) stock in a research note released on November 06, 2019 offered a Hold rating with a price target of $34. RBC Capital Mkts was of a view on October 08, 2019 that the stock is Sector Perform, while Stifel gave the stock Sell rating on June 26, 2019, issuing a price target of $36.50- $25. Macquarie on their part issued Neutral rating on April 30, 2019.


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