Rollins closes out a difficult month with one genuinely interesting contradiction: the stock is down 6% over 30 days, yet options traders have swung to their most call-heavy positioning in weeks.
The options shift is the standout this week. The put/call ratio dropped to 0.65 — well below its 20-day average of 0.75, and roughly 1.4 standard deviations below the mean. That marks a sharp reversal from the defensive hedging flagged in the May 22 note, when the PCR had climbed toward 0.90. Whether this reflects genuine bullish conviction or simply the expiry of earlier hedges, the tilt toward calls is now the clearest directional signal from the positioning data.
Short interest, by contrast, has barely moved. It edged up 2% on the week to 1.79% of free float — roughly 8.6 million shares — reversing a fraction of the steep 24.6% monthly decline. As noted previously, shorts aggressively unwound after the May earnings print; that unwind has now stalled, but there is nothing in the current level to suggest a fresh build is underway. The borrow market remains extraordinarily loose: availability has eased further to 4,636%, near the week's high, meaning supply of lendable shares is effectively unconstrained. Cost to borrow has plunged to 0.18% — down nearly 58% on the week and 59% over the past month — removing almost all friction for new short positions. The ORTEX short score holds at 34, a moderate reading that has been largely flat for two weeks.
The Street remains broadly constructive but has been quietly trimming its ambitions. Seven analysts carry buy ratings versus five holds — a slight majority in favour — with a consensus price target around $64, implying roughly 20% upside from current levels of $53.16. The most recent action came from Wells Fargo on May 15, which kept its Equal-Weight rating but nudged its target down to $55 from $58. That sits near the low end of the analyst range. The valuation picture is demanding: the PE runs at 40.7x and EV/EBITDA at 26.9x, both drifting lower over 30 days as the price has pulled back, but not dramatically so. The EV/EBITDA multiple has compressed by about 0.4 turns over the past month — modest rather than meaningful. On factor scores, the dividend score ranks in the 95th percentile and the analyst recommendation differential scores in the 94th, reflecting how far the current price has fallen below where most analysts sit. The EV/EBIT rank scores near the bottom of the universe at the 8th percentile, a reminder that Rollins trades at a meaningful quality premium.
Among correlated peers, the picture was mixed on the week. WCN fell 3.3% and CTAS dropped 2.0%, making Rollins's own 1.1% weekly decline look relatively contained by comparison. RBA gained 2.3% and TTEK added 1.7%, suggesting the move lower in ROL reflects more than a pure sector-wide rotation.
Next quarter's earnings are scheduled for July 22. The most recent print on May 14 produced a modest 1.1% gain the following day, a much quieter reaction than the 4.2% post-print surge seen in late April. Whether the shift in options positioning into calls ahead of that date reflects genuine setup optimism — or simply position rebalancing after last week's heavy put activity — is the question worth tracking into summer.
See the live data behind this article on ORTEX.
Open ROL on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
