Insider Sell: Rollins Inc CEO Jerry Gahlhoff Sells 7,000 Shares
On September 18, 2023, Jerry Gahlhoff, President and CEO of Rollins Inc (NYSE:ROL), sold 7,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 19,000 shares over the past year and made no purchases.
Jerry Gahlhoff has been with Rollins Inc for several years, serving in various leadership roles before assuming his current position as President and CEO. Under his leadership, the company has seen steady growth and expansion.
Rollins Inc is a premier global consumer and commercial services company. Through its wholly owned subsidiaries, Orkin LLC., HomeTeam Pest Defense, Orkin Canada, Western Pest Services, Northwest Exterminating, and Critter Control, Inc., the company provides essential pest control services and protection against termite damage, rodents, and insects to more than two million customers in the United States, Canada, Central America, South America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, Mexico, and Australia from more than 700 locations.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. Let's delve into the details.
The insider transaction history for Rollins Inc shows a clear trend towards selling. Over the past year, there have been 15 insider sells and only 1 insider buy. This could indicate that insiders believe the stock is currently overvalued, or it could simply reflect personal financial decisions by the insiders.
On the day of the insider's recent sell, shares of Rollins Inc were trading for $38 apiece, giving the stock a market cap of $18.45 billion. This is significantly higher than the industry median, suggesting that the stock may be overpriced.
However, the price-earnings ratio of 48.37 is lower than the companys historical median, indicating that the stock may be undervalued compared to its past performance.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Rollins Inc is modestly undervalued. With a price of $38 and a GuruFocus Value of $44.29, the stock has a price-to-GF-Value ratio of 0.86.
In conclusion, while the insider's recent sell-off may raise some eyebrows, the overall valuation of Rollins Inc suggests that the stock is still a good buy. Investors should keep a close eye on the company's performance and any future insider transactions.
This article first appeared on GuruFocus.
