Shares of pest control services provider Rollins (NYSE:ROL) are plunging in the morning session today after it priced a secondary public offering of approximately 38.72 million shares at $35 per share.
The offering is being made by one of Rollins’ existing investors, LOR, Inc. The offering is anticipated to close on September 11, and the underwriters have been given a 30-day option to acquire up to an additional 5.78 million shares from LOR.
Rollins is not selling any of the shares on offer and will not receive any proceeds. Subject to the closing of the offering, Rollins has agreed to buy back ~8.72 million shares for about $300 million.
Overall, the Street has a consensus price target of $50.50 on Rollins, alongside a Moderate Buy consensus rating. The company’s shares have now firmly dropped below both the 50-period moving average and the upward parallel channel, indicating further potential downside in the stock.
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