HOLD Hedge Funds Are Dumping Rollins, Inc. (ROL)

Judging by the fact that Rollins, Inc. (NYSE:ROL) has experienced falling interest from the smart money, it’s easy to see that there were a few hedgies that decided to sell off their full holdings by the end of the third quarter. Interestingly, Pasco Alfaro / Richard Tumure’s Miura Global Management sold off the largest position of the 700 funds monitored by Insider Monkey, totaling about $20.5 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also said goodbye to its stock, about $7.8 million worth of ROL shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Rollins, Inc. (NYSE:ROL) but similarly valued. We will take a look at NVR, Inc. (NYSE:NVR), DDR Corp (NYSE:DDR), Fortinet Inc (NASDAQ:FTNT), and Lamar Advertising Co (NASDAQ:LAMR). This group of stocks’ market values resemble ROL’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $374 million. That figure was $346 million in ROL’s case. Fortinet Inc (NASDAQ:FTNT) is the most popular stock in this table. On the other hand DDR Corp (NYSE:DDR) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Rollins, Inc. (NYSE:ROL) is even less popular than DDR. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: none.