Rollins shares fell 6.4% to $30.40 on Sept. 24, near a 52-week low. Piper Sandler also cut its rating to Neutral and lowered its price target to $33 from $46, citing concern that AI assistants could steer customers to cheaper local pest-control firms.
Piper’s concern is that AI answers to searches such as termite treatment could bypass Orkin, Rollins’ well-known brand, which has relied on heavy marketing for visibility. Private-equity-backed firms are also buying smaller pest-control businesses, adding competition as Rollins pursues growth of nearly 8% a year.
Bulls argue pest control is a hands-on service and customers tend to stay with trusted providers, supporting recurring revenue and dividend increases. Rollins missed earnings twice in the past four quarters and traded at nearly 29 times earnings. Insider Monkey reported 63 hedge funds held the stock in the second quarter of 2026, up from 47 in the first; upcoming earnings reports will show whether Rollins can deliver steady organic growth.
