On June 12, 2023, Kenneth Krause, Executive Vice President, Chief Financial Officer, and Treasurer of Rollins Inc (ROL, Financial), sold 12,000 shares of the company's stock. This move comes amidst a year of insider selling activity for the pest control services provider. In this article, we will take a closer look at the company, Kenneth Krause's role, and the implications of this insider sell.
Who is Kenneth Krause?
Kenneth Krause has been with Rollins Inc since 2013 and currently serves as the Executive Vice President, Chief Financial Officer, and Treasurer. In his role, Krause is responsible for overseeing the company's financial operations, including financial planning and analysis, accounting, tax, treasury, and investor relations. Prior to joining Rollins, Krause held various finance and accounting positions at other companies.
Rollins Inc's Business Description
Rollins Inc is a leading provider of pest control services, operating through a network of subsidiaries that provide residential and commercial services. The company's primary services include termite and pest control, as well as other services such as insulation, wildlife management, and lawn care. Rollins operates under several well-known brands, including Orkin, HomeTeam Pest Defense, and Western Pest Services. The company has a strong presence in North America and has been expanding its operations internationally.
Insider Sell Analysis
Over the past year, Kenneth Krause has sold a total of 12,000 shares and has not made any purchases. This recent sale represents a significant portion of his holdings in the company. The insider transaction history for Rollins Inc shows that there have been no insider buys in total over the past year, while there have been 26 insider sells during the same period.
This trend of insider selling could be a cause for concern for investors, as it may indicate that insiders believe the stock is overvalued or that the company's prospects are not as strong as they once were. However, it is essential to consider other factors, such as the company's valuation and overall market conditions, before drawing any conclusions.
Valuation and Stock Price Relationship
Shares of Rollins Inc were trading at $40.78 apiece on the day of Kenneth Krause's recent sell, giving the stock a market cap of $20.15 billion. The price-earnings ratio is 53.10, which is higher than the industry median of 16.79 and higher than the company's historical median price-earnings ratio.
With a price of $40.78 and a GuruFocus Value of $42.80, Rollins Inc has a price-to-GF-Value ratio of 0.95. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider sell by Kenneth Krause and the overall trend of insider selling at Rollins Inc may raise some concerns for investors, it is essential to consider the company's valuation and other factors before making any investment decisions. Currently, the stock appears to be fairly valued based on its GF Value, and investors should continue to monitor the company's performance and any changes in insider activity moving forward.
