Rollins Inc. (ROL) shares fall following downgrade at Zacks Investment Research

Zacks Investment Research (Rollins Inc.: NYSE) shares rose on Wednesday Dec 28 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, U.S. stocks were little changed on Wednesday, as investors found few reasons to keep pushing shares higher towards the 20,000 mark.

The Dow Jones Industrial Average DJIA, -0.11% rose 3.1 points to 19,949, essentially unchanged on the day. The S&P 500 SPX, -0.39% lost 3 points, or 0.1%, to 2,266 while the Nasdaq Composite Index COMP, -0.59% slipped 6.4 points, or 0.1%, to 5,482.

Analysts at Zacks Investment Research downgraded shares of Zacks Investment Research (Rollins Inc.: NYSE) from Buy to Hold in a research note to investors today. With a rating of Hold on the shares, the company has a 52-week high of $34.24. The one-year price target of $33.67 is less than the opening price of $33.82, causing a fair amount of other analysts to issue statements on the company recently. Downgrades happen when analysts consider that the future prospects for the security have diminished from the initial recommendation, often due to an important and crucial digression in the company’s operations, future outlook or industry.

Shares of Zacks Investment Research (Rollins Inc.: NYSE) opened at $33.82 on Tuesday trading between $33.66 and $33.97, and last traded at $33.81, a spike of $0.02 or 0.06% over the previous closing price.

Zacks Investment Research (Rollins Inc.: NYSE) currently has a market cap of 7.36B.

Zacks Investment Research (Rollins Inc.: NYSE) Average Daily Trading Volume

The stock’s average daily volume is 420,659 shares out of a total float 94,388,000 and some 26,288 shares crossed the trading desk yesterday, below the average. Trading volume is likely to increase in the next few days as investors often use increases in trading volume to identify substantial volume aggregation or circulation by institutional investors.

While higher trading for one day will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks delivers a positive cue to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.

Zacks Investment Research (Rollins Inc.: NYSE) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of successful trades.

Trades for Zacks Investment Research (Rollins Inc.: NYSE) have ranged from $23.69 – 34.24, and the stock now has a 50-day MA of $32.60 and 200-day MA of $29.65. Today’s last price is 1.26%% lower than the 52 week high of $34.24.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors look for companies that have raised their earnings at least 25% or more over the past 3 years.

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