During a recent move Rollins Corporation (NYSE: ) Corporate Secretary Elizabeth B. Chandler sold 4,686 shares of common stock on August 1, 2024, at an average price of $47.82 per share, for a total of approximately $224,084. The transactions were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to develop a predetermined schedule of buying and selling stock without having material non-public information.
The shares were sold in multiple transactions at prices ranging from $47.76 to $48.02, according to the filing. After the sale, Chandler directly held 95,023 shares of the company’s stock.
In addition, the SEC filing revealed several gift transactions codenamed “G” in which Chandler gave away a total of 1,000 shares on August 1 and 2, but did not report the monetary value of these transactions. The gifts resulted in a slight reduction in Chandler’s holdings, which include restricted and unrestricted stock.
Investors and market watchers often keep a close eye on insider transactions, such as Chandler’s, because they can provide senior executives with insights into a company’s current valuation and future prospects. However, it’s worth noting that these transactions don’t necessarily indicate a change in company fundamentals, and there are a number of reasons why insiders might choose to sell shares.
Headquartered in Atlanta, Georgia, Rollins Corporation is a leader in services to the residential and other construction industries, specializing in pest and termite control services. The company operates extensively and is known for its commitment to efficient, environmentally friendly pest control solutions.
“In other recent news, Rollins showed strong financial results in the second quarter, with revenue rising 8.7% to $892 million. This growth was driven by organic expansion (reportedly 7.7%) and Driven by strategic acquisitions, of which the company completed 26 acquisitions in the first half, the adjusted EBITDA margin was close to 40%, reflecting the company’s effective cost leverage and operational management. Although the performance was mixed, Rollins Still beat organic growth targets.
Investment Professional Insights
The latest insider trading at Rollins Co. comes at a time when the company’s financial metrics are catching the attention of investors. Rollins has a market value of $23.29 billion and a price-to-earnings ratio of 50.63, which is a very high price-to-earnings ratio. This figure indicates a premium valuation, as the company’s P/E ratio is higher than the industry average. Nonetheless, Rollins still demonstrated an impressive gross margin of over 52% over the trailing 12 months to Q2 2024, indicating strong operating efficiency.
Additionally, Rollins’ revenue growth is commendable, growing 12.72% in the trailing 12 months to the second quarter of 2024. Additionally, Rollins has a track record of consistent dividend payments, having raised it for 21 consecutive years, which may be attractive to income-focused investors. With the last dividend growth of 15.38% in the trailing 12 months to Q2 2024, the stock’s dividend yield as of the last record date was 1.27%.
For investors interested in Rollins’ future prospects, it’s worth noting that three analysts have already lowered their earnings expectations for the period ahead. This may be a consideration when evaluating the company’s recent performance. For those seeking further insight, InvestingPro offers a series of additional tips on Rollins Inc, which can be accessed on InvestingPro, including a detailed analysis of the company’s valuation multiples and liquidity position.
InvestingPro Tips also highlights that Rollins has moderate operating debt levels and sufficient cash flow to cover interest payments, which is a positive sign for the company’s financial health. Through another 16 InvestingPro Tips, investors have the opportunity to gain a deeper understanding of the company’s financial condition and market position, thereby making more informed investment decisions.
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