Rollins (ROL) Reported 11% YOY Revenue Growth
Conestoga Capital Advisors, an asset management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Cap Composite rose 8.70% net of fees in the second quarter, outperforming the Russell Midcap Growth Index’s 6.23% return. Year-to-date, the strategy returned 19.82% net of fees compared to a 15.94% return for the benchmark. The strategy benefited from the positive stock selection in five of the seven sectors in which it is invested. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Mid Cap Strategy highlighted stocks like Rollins, Inc. (NYSE:ROL) in the second quarter 2023 investor letter. Based in Atlanta, Georgia, Rollins, Inc. (NYSE:ROL) offers pest and wildlife control services. On August 10, 2023, Rollins, Inc. (NYSE:ROL) stock closed at $40.77 per share. One-month return of Rollins, Inc. (NYSE:ROL) was -8.46%, and its shares gained 10.28% of their value over the last 52 weeks. Rollins, Inc. (NYSE:ROL) has a market capitalization of $20.091 billion.
Conestoga Mid Cap Strategy made the following comment about Rollins, Inc. (NYSE:ROL) in its second quarter 2023 investor letter:
"Rollins, Inc. (NYSE:ROL): ROL is a leader in pest and termite control across residential and commercial markets in the U.S. ROL performed well in the 2Q23 quarter due to its very solid 1Q23 results coupled with the announcement of its second largest acquisition. ROL reported 11% year-over year revenue growth (organic growth of 9.8%), adjusted EBITDA increased by 18% and adjusted EPS increased 20%. The management team, particularly the new CFO, has expressed its confidence in its long-term ability to drive margin expansion. In early April, the company also announced the acquisition of the 13th largest pest control company in the US, Fox Pest Control. The deal is the 2nd largest in its history and represents ROL’s first significant effort into the door-to-door business. Fox’s door-to-door selling expertise could be leveraged across the ROL’s brand family, particularly HomeTeam."
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Rollins, Inc. (NYSE:ROL) is not on our list of 30 Most Popular Stocks Among Hedge Funds As per our database, 36 hedge fund portfolios held Rollins, Inc. (NYSE:ROL) at the end of first quarter which was 31 in the previous quarter.
We discussed Rollins, Inc. (NYSE:ROL) in another article and shared the list of most oversold S&P 500 stocks. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
