Rollins slides after Q2 margin miss and softer residential demand

Rollins (ROL) is down 11.7% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to a second-quarter earnings report that showed slower-than-expected profit growth, margin compression, and softer demand in parts of the residential pest-control business. While revenue still increased, investors seem focused on weaker lead volume, cautious near-term demand commentary, and results that came in below typical earnings expectations.

Details:

Second-quarter revenue rose 7.9% year over year to about $1.08 billion, but quarterly operating margin fell 110 basis points to 18.7% and adjusted EBITDA margin fell 120 basis points to 21.9%.

Quarterly EPS was $0.30 and adjusted EPS was $0.32, while market estimates ahead of the release had centered near $0.34 per share, suggesting an earnings shortfall.

Management said results missed its own expectations because some residential brands that depend more on search, digital media, and inbound calls saw lower lead volume during the quarter.

The company added that its cost structure had been positioned for a stronger peak season, which hurt margin performance when demand softened, even though lead volume improved late in June and into early July.

Sources:

Rollins, Benzinga, SEC

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$ROL Insider Trading Activity

$ROL insiders have traded $ROL stock on the open market 11 times in the past 6 months. Of those trades, 0 have been purchases and 11 have been sales.

Here’s a breakdown of recent trading of $ROL stock by insiders over the last 6 months:

GARY W ROLLINS (EXECUTIVE CHAIRMAN EMERITUS) has made 0 purchases and 2 sales selling 29,449 shares for an estimated $1,858,491.
ELIZABETH B CHANDLER (CLO, GC, CORPORATE SECRETARY) has made 0 purchases and 3 sales selling 17,681 shares for an estimated $1,062,544.
JOHN F WILSON (EXECUTIVE CHAIRMAN) has made 0 purchases and 2 sales selling 12,882 shares for an estimated $812,617.
JERRY JR. GAHLHOFF (PRESIDENT & CEO) has made 0 purchases and 2 sales selling 5,817 shares for an estimated $367,421.
THOMAS D TESH (Chief Admin. Officer) has made 0 purchases and 2 sales selling 1,210 shares for an estimated $76,405.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$ROL Hedge Fund Activity

We have seen 334 institutional investors add shares of $ROL stock to their portfolio, and 454 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

SELECT EQUITY GROUP, L.P. added 3,272,441 shares (+218.9%) to their portfolio in Q1 2026, for an estimated $174,781,073
POLEN CAPITAL MANAGEMENT LLC added 2,177,678 shares (+inf%) to their portfolio in Q1 2026, for an estimated $116,309,781
PICTET ASSET MANAGEMENT HOLDING SA added 1,899,515 shares (+188.2%) to their portfolio in Q1 2026, for an estimated $101,453,096
MONTRUSCO BOLTON INVESTMENTS INC. removed 1,857,978 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $99,234,604
MORGAN STANLEY added 1,819,200 shares (+49.9%) to their portfolio in Q1 2026, for an estimated $97,163,472
NEUBERGER BERMAN GROUP LLC removed 1,644,785 shares (-93.3%) from their portfolio in Q1 2026, for an estimated $87,847,966
GEODE CAPITAL MANAGEMENT, LLC added 1,526,245 shares (+15.0%) to their portfolio in Q1 2026, for an estimated $81,516,745

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$ROL Congressional Stock Trading

Members of Congress have traded $ROL stock 4 times in the past 6 months. Of those trades, 4 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $ROL stock by members of Congress over the last 6 months:

REPRESENTATIVE APRIL MCCLAIN DELANEY has traded it 4 times. They made 4 purchases worth up to $95,000 on 03/31, 02/20, 02/18, 02/13 and 0 sales.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard. You can access data on congressional stock trades through the Quiver Quantitative API Congress trades endpoint.

$ROL Price Targets

Multiple analysts have issued price targets for $ROL recently. We have seen 7 analysts offer price targets for $ROL in the last 6 months, with a median target of $56.0.

Here are some recent targets:

Toni Kaplan from Morgan Stanley set a target price of $65.0 on 07/08/2026
Jason Haas from Wells Fargo set a target price of $46.0 on 06/25/2026
Connor Cerniglia from Bernstein set a target price of $52.0 on 05/29/2026
Joshua Chan from UBS set a target price of $61.0 on 04/24/2026
Brian McNamara from Canaccord Genuity set a target price of $51.0 on 04/24/2026
Anthony Chukumba from Loop Capital set a target price of $56.0 on 04/13/2026
Ashish Sabadra from RBC Capital set a target price of $67.0 on 02/12/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.