Rollins (NYSE:ROL) Shares Gap Down After Earnings Miss

Rollins, Inc. (NYSE:ROL) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $65.60, but opened at $55.65. Rollins shares last traded at $57.1090, with a volume of 2,866,071 shares trading hands.

The business services provider reported $0.25 earnings per share for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.02). The business had revenue of $912.91 million during the quarter, compared to analyst estimates of $925.08 million. Rollins had a return on equity of 37.70% and a net margin of 14.00%.The firm’s revenue was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.22 EPS.

Rollins Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Wednesday, February 25th will be issued a $0.1825 dividend. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.73 dividend on an annualized basis and a yield of 1.2%. Rollins’s payout ratio is presently 68.22%.

Key Headlines Impacting Rollins

Here are the key news stories impacting Rollins this week:

• Positive Sentiment: Company reported its 24th consecutive year of revenue growth and delivered double‑digit full‑year revenue, earnings and cash‑flow growth — an indication of durable long‑term fundamentals. PR Newswire: Rollins reports Q4 and FY2025 results
• Positive Sentiment: Some sell‑side analysts view the miss as a buying opportunity; William Blair reiterated a Buy and several firms still carry Overweight/Buy views with median price targets well above the current level — support for a recovery if operating trends re‑accelerate. TipRanks: Buy on Weakness (William Blair)
• Neutral Sentiment: Analyst roundup pieces summarize mixed views from five analysts — useful to watch for any coordinated changes to ratings/targets that could influence flows. Benzinga: Analyst outlook on Rollins
• Neutral Sentiment: Earnings presentation and analyst note packages released after the print provide detail on regional/segment trends and margin drivers — review slides/call transcript for management commentary on weather and demand. Seeking Alpha: Q4 presentation
• Negative Sentiment: Q4 EPS and revenue missed consensus: $0.25 vs ~$0.27 expected and ~$913M revenue vs consensus roughly $925–936M, prompting the initial selloff. Zacks: Q4 earnings and revenue miss
• Negative Sentiment: Management cited weaker demand for some pest‑control services tied to erratic weather patterns — a near‑term demand headwind that analysts flagged as the reason margins and revenue fell short. Reuters: Weaker demand cited
• Negative Sentiment: Market reaction: multiple outlets report a sharp premarket/after‑hours drop (double‑digit moves reported by some sources) and high intraday volume — signals heightened short‑term selling and repositioning. Investing.com: Shares plunge after miss
• Negative Sentiment: Recent data show notable insider selling activity and large block sales by trusts in public filings — could weigh on sentiment if investors view it as distribution. Quiver: Insider/inst activity and analyst targets

Wall Street Analyst Weigh In

ROL has been the subject of several analyst reports. Jefferies Financial Group set a $66.00 target price on shares of Rollins and gave the company a “buy” rating in a research note on Monday, November 3rd. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $64.00 price objective on shares of Rollins in a report on Thursday, October 30th. Wells Fargo & Company set a $56.00 target price on shares of Rollins and gave the stock an “equal weight” rating in a research note on Thursday. Royal Bank Of Canada set a $67.00 price target on Rollins and gave the company an “outperform” rating in a research note on Thursday. Finally, UBS Group set a $65.00 price target on Rollins in a report on Wednesday, January 21st. Ten investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Rollins presently has a consensus rating of “Moderate Buy” and an average price target of $66.42.

Insider Buying and Selling at Rollins

In related news, CEO Jerry Jr. Gahlhoff sold 1,307 shares of the business’s stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $62.83, for a total transaction of $82,118.81. Following the transaction, the chief executive officer directly owned 327,079 shares in the company, valued at approximately $20,550,373.57. The trade was a 0.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Chairman John F. Wilson sold 5,344 shares of the stock in a transaction dated Wednesday, January 28th. The shares were sold at an average price of $62.83, for a total transaction of $335,763.52. Following the completion of the sale, the chairman owned 594,705 shares of the company’s stock, valued at approximately $37,365,315.15. The trade was a 0.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 59,150 shares of company stock valued at $3,711,814. 4.47% of the stock is owned by company insiders.

Institutional Investors Weigh In On Rollins

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in Rollins by 4.3% during 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 buying an additional 1,562,241 shares during the last quarter. State Street Corp raised its holdings in shares of Rollins by 1.4% during the 3rd quarter. State Street Corp now owns 12,274,415 shares of the business services provider’s stock worth $720,999,000 after acquiring an additional 172,303 shares during the period. Geode Capital Management LLC boosted its position in shares of Rollins by 6.6% during the 4th quarter. Geode Capital Management LLC now owns 10,163,847 shares of the business services provider’s stock valued at $608,256,000 after acquiring an additional 626,866 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Rollins by 41.2% in the second quarter. Invesco Ltd. now owns 5,657,997 shares of the business services provider’s stock valued at $319,224,000 after purchasing an additional 1,649,676 shares during the period. Finally, Norges Bank purchased a new stake in shares of Rollins in the fourth quarter valued at about $244,669,000. 51.79% of the stock is currently owned by hedge funds and other institutional investors.

Rollins Trading Down 10.7%

The company has a quick ratio of 0.71, a current ratio of 0.77 and a debt-to-equity ratio of 0.32. The company’s 50-day moving average is $61.49 and its 200-day moving average is $59.04. The stock has a market capitalization of $28.39 billion, a price-to-earnings ratio of 53.74 and a beta of 0.78.

Rollins Company Profile

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.