Rollins (NYSE:ROL) Stock Falls 6.7% – Time to Sell?

Rollins, Inc. (NYSE:ROL)’s stock price dropped 6.7% on Thursday. The company traded as low as $30.12 and last traded at $30.3010. 7,086,465 shares traded hands during trading, an increase of 71% from the average daily volume of 4,147,090 shares. The stock had previously closed at $32.49.

Rollins News Summary

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: A third-party investing article identified Rollins as one of several companies with a “boring” structural advantage similar to Waste Management: recurring demand and services that customers may find difficult to discontinue. This supports the long-term durability of Rollins’ pest-control business, although the article is not a new company announcement. Waste Management Returned 290% in a Decade article
• Neutral Sentiment: Rollins presented at the U.S. All Stars Conference. The available report is a transcript, but no specific new guidance, acquisition, or material operating update was provided in the supplied article details. Rollins U.S. All Stars Conference Transcript
• Neutral Sentiment: Several articles discuss WWE performer Seth Rollins’ planned television return and appearances on NFL Network. These stories are unrelated to Rollins, Inc. (NYSE: ROL) and should not affect the pest-control company’s valuation. Seth Rollins WWE TV Return article
• Negative Sentiment: Piper Sandler downgraded Rollins, Inc. (ROL) to Neutral from Overweight, citing potential disruption from agentic AI and AI-driven search. If consumers increasingly use AI tools instead of conventional search to find local service providers, Rollins could face reduced online visibility, fewer leads, or higher marketing costs. The downgrade is the clearest near-term catalyst behind the weakness in the stock. Rollins cut to Neutral at Piper article

Wall Street Analysts Forecast Growth

ROL has been the subject of a number of recent research reports. Morgan Stanley cut their target price on shares of Rollins from $70.00 to $65.00 and set an “overweight” rating for the company in a report on Wednesday, July 8th. Sanford C. Bernstein cut Rollins from an “outperform” rating to a “market perform” rating and dropped their price objective for the company from $70.00 to $52.00 in a report on Friday, May 29th. Bank of America reissued a “neutral” rating and issued a $35.00 price objective (down from $55.00) on shares of Rollins in a research report on Thursday, July 23rd. JPMorgan Chase & Co. restated an “underweight” rating and set a $45.00 price target (down from $70.00) on shares of Rollins in a research note on Friday, July 24th. Finally, BNP Paribas Exane dropped their target price on Rollins from $63.00 to $44.00 and set a “hold” rating on the stock in a research report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Rollins has an average rating of “Hold” and a consensus target price of $47.94.

Rollins Stock Performance

The company has a quick ratio of 0.58, a current ratio of 0.63 and a debt-to-equity ratio of 0.34. The business’s 50-day simple moving average is $36.40 and its two-hundred day simple moving average is $45.66. The firm has a market cap of $14.45 billion, a price-to-earnings ratio of 27.29, a P/E/G ratio of 3.27 and a beta of 0.74.

Rollins (NYSE:ROL) last posted its quarterly earnings data on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, missing analysts’ consensus estimates of $0.34 by ($0.02). The business had revenue of $1.08 billion during the quarter, compared to analysts’ expectations of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The firm’s quarterly revenue was up 7.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.30 earnings per share. As a group, sell-side analysts expect that Rollins, Inc. will post 1.18 earnings per share for the current fiscal year.

Rollins Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were issued a dividend of $0.1825 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.73 dividend on an annualized basis and a dividend yield of 2.4%. Rollins’s dividend payout ratio is presently 66.36%.

Institutional Investors Weigh In On Rollins

A number of hedge funds have recently modified their holdings of the business. National Pension Service increased its stake in shares of Rollins by 138.3% in the 4th quarter. National Pension Service now owns 51,277 shares of the business services provider’s stock worth $3,078,000 after acquiring an additional 29,758 shares during the last quarter. Dudley & Shanley Inc. raised its stake in Rollins by 8.8% during the second quarter. Dudley & Shanley Inc. now owns 495,655 shares of the business services provider’s stock worth $20,689,000 after purchasing an additional 39,925 shares during the period. Public Employees Retirement System of Ohio raised its stake in Rollins by 16.8% during the first quarter. Public Employees Retirement System of Ohio now owns 216,278 shares of the business services provider’s stock worth $11,551,000 after purchasing an additional 31,173 shares during the period. Danske Bank A S acquired a new position in Rollins in the 2nd quarter valued at about $61,792,000. Finally, USS Investment Management Ltd boosted its holdings in Rollins by 55.9% in the 1st quarter. USS Investment Management Ltd now owns 3,131,337 shares of the business services provider’s stock valued at $167,260,000 after purchasing an additional 1,123,237 shares during the last quarter. 51.79% of the stock is currently owned by institutional investors and hedge funds.

Rollins Company Profile

Rollins, Inc is a global provider of pest and termite control services for residential and commercial customers. The company helps protect homes, businesses, and other properties from insects, rodents, termites, wildlife, and other pests through inspection, prevention, treatment, and ongoing monitoring programs.

Rollins operates through a portfolio of recognized pest control brands, including Orkin, Terminix, HomeTeam Pest Defense, Western Exterminator, and Critter Control. Its services include general pest management, termite protection, mosquito and bed bug control, wildlife management, and specialized commercial pest control programs.

Founded in 1948 and headquartered in Atlanta, Georgia, Rollins serves customers across the United States and internationally.