Fundsmith 13F: Cuts Rollins (ROL) Stake by $41M

Fundsmith significantly trimmed its investment in Rollins, Inc. (NYSE: ROL) according to its latest Form 13F filing with the SEC for the period ending May 15, 2026. The London-based investment firm, known for its focused, buy-and-hold strategy, cut its position by 58.07%. Fundsmith sold 858,694 shares of the pest-control giant during the quarter, leaving it with 619,935 shares. The remaining stake was valued at approximately $29.25 million at the end of the reporting period.

Fundsmith Continues to Pare Down Holdings

Before this latest transaction, Fundsmith held 1,478,629 shares of Rollins. After selling off more than half its stake, the firm's position has shrunk to 619,935 shares. This move aligns with other recent portfolio changes by Fundsmith. Around the same time, the fund completely exited positions in Graco Inc. and closed out stakes in Doximity and Sabre Corporation. Because 13F filings are backward-looking, they show where a manager stood on May 15, 2026, and might not match Fundsmith's actual portfolio today.

Rollins Stock Pulls Back From Highs

Rollins shares traded at $47.19 on Saturday. The stock has experienced a volatile year, trading between a 52-week low of $31.88 and a 52-week high of $66.14. Rollins is currently trading above its 50-day moving average of $37.63, but it remains below its 200-day moving average of $50.95. The company's price-to-earnings ratio is 29.41, which drops slightly to a forward P/E of 24.87 based on future profit projections.

Solid Financial Growth Despite Market Headwinds

In its latest operational updates, Rollins showed steady financial health. The company generated annual revenue of $3.92 billion, growing its top line by 7.9% compared to the previous year. Rollins reported earnings per share of $1.10, backed by a strong return on equity of 37.01% and a net margin of 13.55%. Investors can look forward to the next financial update when Rollins is scheduled to report its quarterly earnings on October 28, 2026.

Consistent Dividends Support Shareholders

Rollins continues to return cash to its investors through steady dividend payouts. The company pays an annual dividend rate of $0.73 per share, which translates to a dividend yield of 2.26%. Rollins has maintained a stable payout ratio of 64.9%, showing that it uses a little under two-thirds of its earnings to cover these dividend payments.

Wall Street Analysts Dial Back Expectations

Several equity research firms recently updated their outlooks on Rollins. On October 15, 2026, Citigroup kept a Neutral rating on the stock but lowered its price target from $46.00 to $32.00. UBS also maintained a Neutral rating on October 14, 2026, cutting its target from $43.00 to $36.00. JP Morgan lowered its target to $35.00 from $40.00 on October 13, 2026, keeping a Neutral stance. Meanwhile, Morgan Stanley kept an Overweight rating on October 13, 2026, though it trimmed its price target from $45.00 to $43.00. Currently, 17 analysts track the stock, resulting in a consensus Hold recommendation with an average price target of $45.59.

Keeping Homes and Businesses Pest-Free

Rollins is a long-standing service provider that specializes in pest and wildlife control. Through its well-known brands, the Atlanta-based company offers termite protection and general pest management to homes, hospitals, restaurants, and warehouses worldwide. Its recession-resistant business model has historically made it an attractive holding for long-term investors like Fundsmith.

What to Watch at ROL

Investors keeping an eye on Rollins should watch the upcoming earnings release on October 28, 2026, to see if revenue growth remains on track. It will also be worth monitoring future SEC filings to see if Fundsmith continues to reduce its position or if the fund manager decides to hold onto its remaining shares.