Root (NASDAQ:ROOT) Stock Price Down 8.5% – Should You Sell?

Root, Inc. (NASDAQ:ROOT)’s share price traded down 8.5% on Tuesday . The stock traded as low as $121.01 and last traded at $116.75. 117,661 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 511,968 shares. The stock had previously closed at $127.58.

Analysts Set New Price Targets

A number of research analysts recently issued reports on ROOT shares. JMP Securities lowered Root from an “outperform” rating to a “market perform” rating in a report on Friday, November 22nd. Citizens Jmp cut shares of Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. Wells Fargo & Company reissued a “buy” rating on shares of Root in a research note on Sunday. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $90.00 target price (up from $82.00) on shares of Root in a report on Tuesday, November 5th. Finally, UBS Group upped their price target on shares of Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research report on Monday, November 4th. Five analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $77.83.

Root Stock Performance

The firm has a 50 day moving average price of $95.30 and a 200-day moving average price of $72.11. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The company has a market cap of $2.00 billion, a P/E ratio of -107.76 and a beta of 2.58.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, February 26th. The company reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.63) by $1.93. The business had revenue of $326.70 million during the quarter, compared to the consensus estimate of $287.79 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. On average, research analysts predict that Root, Inc. will post -0.08 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. FMR LLC raised its position in Root by 966.2% in the 3rd quarter. FMR LLC now owns 18,040 shares of the company’s stock valued at $682,000 after purchasing an additional 16,348 shares during the last quarter. Barclays PLC boosted its stake in Root by 361.6% in the third quarter. Barclays PLC now owns 14,033 shares of the company’s stock valued at $529,000 after acquiring an additional 10,993 shares during the last quarter. Versor Investments LP bought a new stake in shares of Root during the 3rd quarter valued at $216,000. Nordea Investment Management AB lifted its stake in shares of Root by 7.3% in the 4th quarter. Nordea Investment Management AB now owns 20,697 shares of the company’s stock valued at $1,497,000 after purchasing an additional 1,416 shares during the period. Finally, Point72 Asset Management L.P. acquired a new stake in shares of Root during the third quarter worth $428,000. Institutional investors own 59.82% of the company’s stock.

About Root

Root, Inc provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.