Y Intercept Hong Kong Ltd has made a significant investment in Rollins, Inc., acquiring a total of 11,072 shares valued at approximately $625,000. This purchase occurred during the second quarter, as disclosed in a recent filing with the Securities and Exchange Commission. The move highlights growing institutional interest in the business services provider, which specializes in pest and wildlife control.
In addition to Y Intercept, several other institutional investors have recently adjusted their positions in Rollins. Security Financial Services Inc. increased its stake by 3.2% during the first quarter, now holding 5,711 shares valued at $309,000. Red Spruce Capital LLC also raised its investment, growing its stake by 1.2% to own 15,875 shares worth $896,000. Other notable increases include Pittenger & Anderson Inc. with a 1.7% increase, bringing its total to 13,135 shares valued at $710,000, and Mowery & Schoenfeld Wealth Management LLC, which saw a 9.2% increase for a total of 2,601 shares valued at $147,000. Horizon Investments LLC also added to its holdings with a 5.8% increase.
Analysts’ Insights and Stock Performance
Analysts have recently issued various ratings and price targets for Rollins, reflecting confidence in the company’s performance. Weiss Ratings reaffirmed a “buy (b)” rating for Rollins shares in a research note on October 14, 2023. Jefferies Financial Group set a price target of $66.00, while Barclays increased its target from $55.00 to $60.00. JPMorgan Chase & Co. initiated coverage with an “overweight” rating and a price objective of $70.00. Piper Sandler also raised its target to $72.00. Currently, eight analysts rate the stock as a Buy, while five have issued Hold ratings, resulting in a consensus rating of “Moderate Buy” with an average price target of $62.82.
Rollins shares experienced a 0.2% increase, opening at $59.71 on Thursday. The company’s market capitalization now stands at $28.94 billion, with a price-to-earnings ratio of 55.80 and a beta of 0.72. Over the past year, the stock has fluctuated between a low of $45.34 and a high of $60.35.
Financial Performance and Dividend Announcement
The latest quarterly earnings report, released on October 29, 2023, revealed that Rollins reported $0.35 earnings per share (EPS), surpassing analysts’ consensus estimate of $0.32 by $0.03. This performance reflects a net margin of 14.02% and a return on equity of 38.66%. Revenue for the quarter reached $1.03 billion, exceeding analyst expectations of $1.02 billion and marking a 12.0% increase compared to the same period last year. Analysts anticipate that Rollins will post an EPS of $1.09 for the current fiscal year.
In addition to its strong earnings, Rollins announced a quarterly dividend of $0.1825 per share, which will be paid on December 10, 2023. Stockholders of record as of November 10, 2023 will qualify for this dividend, representing an annualized amount of $0.73 and a dividend yield of 1.2%. This dividend marks an increase from the previous quarterly payout of $0.17, with a current dividend payout ratio of 68.22%.
Rollins, Inc., through its subsidiaries, provides pest and wildlife control services to both residential and commercial clients across the United States and internationally, addressing the needs of customers facing common pest challenges.
