ROL Should I Buy
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Rollins Inc. is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has shown consistent growth in revenue and net income, recent Q4 results missed expectations, leading to a significant drop in stock price. Additionally, insider selling and mixed analyst ratings suggest caution. The lack of strong proprietary trading signals further supports a hold recommendation.
The technical indicators show mixed signals. The MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral but leaning towards oversold territory. Moving averages are bullish, but the stock is trading below key pivot levels, with support at $57.591 and resistance at $61.708.
The company reported an 11% YoY increase in revenue for fiscal 2025, indicating strong long-term growth. Analysts like Morgan Stanley and Barclays have highlighted the company's structural tailwinds and durable demand drivers.
Q4 results missed estimates significantly, leading to a 14.8% drop in stock price. Insider selling has surged by over 3752% in the last month. Analysts like Wells Fargo downgraded the stock due to concerns over weather-related headwinds impacting growth in the first half of the year.
In Q4 2025, revenue increased by 9.7% YoY to $912.9 million, and net income rose by 10.19% YoY to $116.4 million. However, gross margin slightly declined by 0.19% YoY to 47.52%. EPS increased by 9.09% YoY to $0.24.
Analysts have mixed views. RBC Capital lowered the price target to $67, while Wells Fargo downgraded the stock to Equal Weight with a $56 price target due to Q4 headwinds. UBS and Barclays remain cautiously optimistic, with price targets of $65 and $72, respectively.
