Root, Inc. (NASDAQ:ROOT) Sees Large Increase in Short Interest

Root, Inc. (NASDAQ:ROOT) saw a significant increase in short interest in the month of December. As of December 31st, there was short interest totalling 1,580,000 shares, an increase of 33.9% from the December 15th total of 1,180,000 shares. Based on an average daily trading volume, of 681,700 shares, the days-to-cover ratio is presently 2.3 days.

Insider Activity at Root

In related news, Director Julie Szudarek sold 2,000 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $96.33, for a total transaction of $192,660.00. Following the sale, the director now owns 15,003 shares of the company’s stock, valued at $1,445,238.99. This trade represents a 11.76 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Meyer Malka sold 50,959 shares of the business’s stock in a transaction dated Thursday, October 31st. The stock was sold at an average price of $84.78, for a total transaction of $4,320,304.02. Following the completion of the transaction, the insider now owns 102 shares of the company’s stock, valued at $8,647.56. This represents a 99.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 246,905 shares of company stock valued at $20,440,479 over the last ninety days. 11.71% of the stock is owned by company insiders.

Hedge Funds Weigh In On Root

A number of institutional investors have recently bought and sold shares of the business. Point72 DIFC Ltd purchased a new stake in shares of Root in the 3rd quarter valued at $33,000. MetLife Investment Management LLC boosted its holdings in Root by 129.1% in the third quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after purchasing an additional 2,889 shares during the last quarter. Versor Investments LP acquired a new stake in Root during the 3rd quarter worth about $216,000. Wesbanco Bank Inc. purchased a new position in shares of Root during the 4th quarter valued at about $218,000. Finally, Franklin Resources Inc. acquired a new position in shares of Root in the 3rd quarter valued at about $249,000. 59.82% of the stock is owned by hedge funds and other institutional investors.

Root Stock Performance

ROOT stock traded down $3.02 during midday trading on Friday, reaching $85.31. The stock had a trading volume of 273,252 shares, compared to its average volume of 367,341. The firm has a fifty day simple moving average of $84.54 and a two-hundred day simple moving average of $62.11. Root has a 52-week low of $7.22 and a 52-week high of $118.15. 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 stock has a market cap of $1.29 billion, a PE ratio of -69.36 and a beta of 2.55.

Root (NASDAQ:ROOT) last announced its quarterly earnings data on Wednesday, October 30th. The company reported $1.35 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.61) by $1.96. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The business had revenue of $305.70 million for the quarter, compared to analyst estimates of $272.77 million. During the same period in the prior year, the company earned ($3.16) earnings per share. The company’s revenue was up 165.1% on a year-over-year basis. As a group, equities research analysts anticipate that Root will post -1.2 EPS for the current year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ROOT. JMP Securities downgraded shares of Root from an “outperform” rating to a “market perform” rating in a research note on Friday, November 22nd. UBS Group increased their price objective on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a report on Monday, November 4th. Keefe, Bruyette & Woods restated an “outperform” rating and set a $90.00 target price (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Citizens Jmp lowered Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. Finally, Wells Fargo & Company raised their price target on Root from $78.00 to $80.00 and gave the stock an “equal weight” rating in a report on Tuesday. Six equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $59.38.

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.