Root (NASDAQ:ROOT) Shares Down 7.3% – What’s Next?

Shares of Root, Inc. (NASDAQ:ROOT) fell 7.3% during trading on Tuesday . The stock traded as low as $80.56 and last traded at $79.11. 57,770 shares traded hands during trading, a decline of 83% from the average session volume of 338,076 shares. The stock had previously closed at $85.31.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on ROOT shares. Wells Fargo & Company lifted their price objective on shares of Root from $78.00 to $80.00 and gave the company an “equal weight” rating in a report on Tuesday, January 14th. UBS Group lifted their price target on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research note on Monday, November 4th. JMP Securities downgraded Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Jefferies Financial Group cut their price objective on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. Finally, Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. Six investment analysts have rated the stock with a hold rating, two have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $59.38.

Root Price Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of -69.18 and a beta of 2.55. The stock has a 50 day moving average price of $84.88 and a 200-day moving average price of $62.97.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.61) by $1.96. The company had revenue of $305.70 million for the quarter, compared to analysts’ expectations of $272.77 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The firm’s quarterly revenue was up 165.1% on a year-over-year basis. During the same quarter in the previous year, the company posted ($3.16) EPS. On average, analysts forecast that Root, Inc. will post -1.2 earnings per share for the current year.

Insider Activity

In related news, Director Julie Szudarek sold 2,000 shares of Root stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $96.33, for a total value of $192,660.00. Following the completion of the transaction, the director now owns 15,003 shares in the company, valued at approximately $1,445,238.99. The trade was a 11.76 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, major shareholder Meyer Malka sold 50,959 shares of the company’s stock in a transaction that occurred on 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 sale, the insider now directly owns 102 shares in the company, valued at approximately $8,647.56. The trade was 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 in the last quarter. Insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ROOT. Point72 DIFC Ltd acquired a new stake in Root in the 3rd quarter valued at about $33,000. MetLife Investment Management LLC raised 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 acquiring an additional 2,889 shares in the last quarter. Versor Investments LP purchased a new position in Root in the third quarter worth approximately $216,000. Wesbanco Bank Inc. purchased a new stake in shares of Root during the 4th quarter worth $218,000. Finally, Franklin Resources Inc. acquired a new position in shares of Root during the third quarter worth $249,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Company Profile

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.