Rollins (NYSE:ROL) Given "Underperform" Rating at Bank of America

Key Points

• Bank of America reiterated an underperform rating on Rollins and cut its price target to $35 from $55, implying about 19.6% downside from the current share price.
• Rollins’ recent quarter came in a bit soft, with EPS of $0.32 missing estimates of $0.34 and revenue of about $1.08 billion slightly below expectations, even though revenue still rose 7.9% year over year.
• Despite the bearish analyst view, Rollins continues to show strong operating performance and shareholder returns, including a 38.37% return on equity, a regular quarterly dividend of $0.1825 per share, and ongoing institutional buying.

Rollins (NYSE:ROL - Get Free Report)'s stock had its "underperform" rating reissued by research analysts at Bank of America in a report issued on Thursday,Benzinga reports. They presently have a $35.00 price target on the business services provider's stock, down from their previous price target of $55.00. Bank of America's price target suggests a potential downside of 19.64% from the stock's current price.

A number of other research analysts have also weighed in on the stock. Morgan Stanley reduced their price objective on shares of Rollins from $70.00 to $65.00 and set an "overweight" rating for the company in a research note on Wednesday, July 8th. Sanford C. Bernstein downgraded Rollins from an "outperform" rating to a "market perform" rating and dropped their target price for the stock from $70.00 to $52.00 in a research report on Friday, May 29th. Weiss Ratings lowered Rollins from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. Rothschild & Co Redburn set a $66.00 price target on Rollins and gave the company a "buy" rating in a research report on Monday, April 27th. Finally, Canaccord Genuity Group set a $51.00 price objective on Rollins and gave the company a "hold" rating in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $56.93.

Rollins Price Performance

NYSE ROL opened at $43.55 on Thursday. The company has a market cap of $20.97 billion, a PE ratio of 39.96, a price-to-earnings-growth ratio of 2.69 and a beta of 0.75. Rollins has a 52 week low of $41.50 and a 52 week high of $66.14. The company has a quick ratio of 0.59, a current ratio of 0.65 and a debt-to-equity ratio of 0.35. The firm's 50-day simple moving average is $46.68 and its two-hundred day simple moving average is $54.01.

Rollins (NYSE:ROL - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 earnings per share for the quarter, missing the consensus estimate of $0.34 by ($0.02). Rollins had a return on equity of 38.37% and a net margin of 13.77%.The business had revenue of $1.08 billion during the quarter, compared to analysts' expectations of $1.09 billion. During the same quarter in the previous year, the business earned $0.30 EPS. Rollins's revenue for the quarter was up 7.9% on a year-over-year basis. Research analysts predict that Rollins will post 1.24 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Norges Bank bought a new stake in Rollins in the 4th quarter worth $244,669,000. Pictet Asset Management Holding SA raised its holdings in Rollins by 188.2% in the first quarter. Pictet Asset Management Holding SA now owns 2,908,818 shares of the business services provider's stock worth $155,335,000 after purchasing an additional 1,899,515 shares in the last quarter. Vanguard Group Inc. grew its holdings in Rollins by 4.3% in the fourth quarter. Vanguard Group Inc. now owns 38,282,523 shares of the business services provider's stock worth $2,297,717,000 after purchasing an additional 1,562,241 shares during the period. USS Investment Management Ltd increased its position in Rollins by 55.9% during 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 buying an additional 1,123,237 shares in the last quarter. Finally, Bessemer Group Inc. increased its stake in Rollins by 11,772.1% during the 4th quarter. Bessemer Group Inc. now owns 1,084,398 shares of the business services provider's stock valued at $65,086,000 after purchasing an additional 1,075,264 shares in the last quarter. 51.79% of the stock is currently owned by hedge funds and other institutional investors.

More Rollins News

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Rollins continued its long track record of growth, with Q2 revenue up 7.9% year over year to about $1.08 billion and organic revenue up 5.7%, marking its 99th consecutive quarter of revenue growth. ROLLINS, INC. REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS
• Positive Sentiment: The company also announced a regular quarterly dividend of $0.1825 per share, reinforcing its shareholder-return profile. ROLLINS, INC. ANNOUNCES REGULAR QUARTERLY CASH DIVIDEND
• Neutral Sentiment: Management’s results showed continued profitability, with return on equity of 38.37% and net margin of 13.77%, but the quarter also highlighted some pressure in the residential pest-control business. Rollins (ROL) Reports Q2 Earnings: What Key Metrics Have to Say
• Negative Sentiment: Q2 EPS of $0.32 missed the $0.34 consensus, and revenue of about $1.08 billion also came in slightly below estimates, fueling the stock’s decline. Rollins (ROL) Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: Investors are also reacting to softer demand and margin compression in some residential brands, with lower lead volume and a weaker near-term outlook weighing on sentiment. Rollins NYSE: ROL reports sales below analyst estimates in Q2 CY2026 earnings, stock drops

About Rollins

Rollins, Inc NYSE: ROL is a provider of pest and termite control services operating through a network of subsidiaries and franchises. Headquartered in Atlanta, Georgia, the company offers a broad range of pest management solutions for both residential and commercial customers, positioning itself as a specialist in protecting property and public health from pests and vectors.

Its service offerings include general pest control, termite inspection and treatment, bed bug remediation, mosquito and vector control, wildlife exclusion, and related specialty services.

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