Y Intercept Hong Kong Ltd has invested approximately $625,000 in Rollins, Inc. (NYSE: ROL), acquiring 11,072 shares during the second quarter of 2023. This acquisition is part of a broader trend, as several hedge funds have recently adjusted their holdings in the business services provider, which specializes in pest and wildlife control services.
Several institutional investors have increased their stakes in Rollins. For instance, Security Financial Services Inc. raised its investment by 3.2% in the first quarter, now holding 5,711 shares valued at about $309,000. Similarly, Red Spruce Capital LLC increased its stake by 1.2% in the second quarter, owning 15,875 shares worth approximately $896,000. Pittenger & Anderson Inc. and Mowery & Schoenfeld Wealth Management LLC have also shown increased investments, with respective stakes of 13,135 shares valued at $710,000 and 2,601 shares worth $147,000.
According to recent data, institutional investors and hedge funds collectively own 51.79% of Rollins’ stock. This significant ownership demonstrates a strong confidence in the company’s performance and potential.
Analysts Update Ratings and Price Targets
In light of these developments, various research firms have provided updated ratings and price targets for Rollins. Weiss Ratings reaffirmed a “buy (b)” rating on October 14, 2023. Jefferies Financial Group set a price target of $66.00 while maintaining a “buy” rating. Barclays raised its price objective from $55.00 to $60.00, labeling the stock as “equal weight.”
Additionally, JPMorgan Chase & Co. initiated coverage of Rollins, issuing an “overweight” rating with a price objective of $70.00. Piper Sandler also increased its price target from $70.00 to $72.00. Currently, eight equity research analysts have rated Rollins as a buy, while five have issued hold ratings, resulting in an average rating of “Moderate Buy” and a consensus price target of $62.82.
Rollins’ Recent Performance and Dividend Increase
On October 29, 2023, Rollins released its quarterly earnings results, reporting earnings per share (EPS) of $0.35, surpassing the consensus estimate of $0.32 by $0.03. The company achieved revenue of $1.03 billion for the quarter, compared to analysts’ expectations of $1.02 billion. This revenue reflects a 12.0% increase compared to the same period last year.
Rollins has also announced a quarterly dividend of $0.1825 per share, set to be paid on December 10, 2023. Shareholders of record as of November 10, 2023, will receive this dividend, marking an increase from the previous quarterly dividend of $0.17. The company’s annualized dividend now stands at $0.73, yielding approximately 1.2%. With a dividend payout ratio of 68.22%, Rollins continues to demonstrate its commitment to returning value to shareholders.
Rollins, Inc., through its subsidiaries, offers pest and wildlife control services to both residential and commercial clients across the United States and internationally. As the company continues to grow, its recent financial performance and strategic investments signal a robust outlook in the business services sector.