Rollins Inc. Reaches New Highs as Analysts Boost Ratings

Shares of Rollins, Inc. (NYSE:ROL) soared to a new 52-week high on Friday, reaching a peak of $60.49 before settling at $60.08. The trading volume for the day was approximately 321,702 shares, a notable increase from the previous closing price of $59.63. This positive market performance reflects growing investor confidence and optimism regarding the company’s future prospects.

Analyst Upgrades Drive Investor Sentiment

Recent analyst evaluations have contributed to the upward momentum for Rollins. On November 12, 2023, Sanford C. Bernstein initiated coverage on the company, assigning an “outperform” rating with a price target of $70.00. Similarly, Wells Fargo & Company issued a report on October 28, 2023, setting a price objective of $63.00 and an “overweight” rating.

Other firms have also weighed in, with Canaccord Genuity Group establishing a target price of $55.00 and a “hold” rating, while Jefferies Financial Group set a target of $66.00 with a “buy” recommendation on November 3, 2023. Additionally, Weiss Ratings reaffirmed a “buy (b)” rating on November 17, 2023. Currently, nine analysts rate the stock as a “buy,” while five have assigned a “hold” rating, leading to a consensus rating of “Moderate Buy” and an average price target of $63.42, according to data from MarketBeat.

Recent Financial Performance and Dividend Announcement

Rollins recently reported its quarterly earnings on October 29, 2023, revealing an earnings per share (EPS) of $0.35, surpassing analysts’ expectations of $0.32 by $0.03. The company recorded revenue of $1.03 billion, exceeding forecasts of $1.02 billion, and demonstrated a year-over-year revenue increase of 12.0%. These results reflect a robust operational performance, with a return on equity of 38.66% and a net margin of 14.02%.

In a move to reward shareholders, Rollins announced a quarterly dividend of $0.1825 per share, payable on December 10, 2023. This marks an increase from the previous dividend of $0.17, representing an annualized dividend of $0.73 and a yield of 1.2%. The ex-dividend date is set for November 10, 2023, and the company’s dividend payout ratio currently stands at 68.22%.

The stock’s recent performance is complemented by the company’s strong financial ratios, including a debt-to-equity ratio of 0.34, a current ratio of 0.68, and a quick ratio of 0.63. Rollins has a market capitalization of approximately $29.25 billion and a price-to-earnings (PE) ratio of 56.40.

The positive trends have attracted institutional investors, with recent modifications in holdings. For instance, Thrive Wealth Management LLC increased its stake in Rollins by 2.7% during the third quarter, now owning 6,473 shares valued at about $380,000. Other notable investments include Security Financial Services INC. and Mowery & Schoenfeld Wealth Management LLC, both of which have boosted their positions in the company.

As Rollins continues to navigate a competitive landscape in the pest and wildlife control industry, the combination of strong financial performance, favorable analyst outlooks, and shareholder returns positions the company for continued growth in the coming months.