Root (NASDAQ:ROOT) Trading Down 4.9% – Here’s Why

Root, Inc. (NASDAQ:ROOT)’s stock price traded down 4.9% during mid-day trading on Monday . The company traded as low as $69.62 and last traded at $69.63. 36,343 shares traded hands during trading, a decline of 93% from the average session volume of 539,282 shares. The stock had previously closed at $73.22.

Wall Street Analysts Forecast Growth

ROOT has been the subject of a number of research reports. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a research note on Thursday, October 3rd. JMP Securities cut Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Wells Fargo & Company lifted their target price on shares of Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a report on Friday, November 1st. Citizens Jmp cut Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. Finally, UBS Group upped their price target on shares of Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. 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. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $59.13.

Root Price Performance

The business’s fifty day simple moving average is $74.44 and its 200 day simple moving average is $58.23. The stock has a market cap of $1.08 billion, a price-to-earnings ratio of -58.16 and a beta of 2.47. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39.

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

Insiders Place Their Bets

In related news, major shareholder Meyer Malka sold 75,839 shares of the stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the transaction, the insider now directly owns 43,107 shares of the company’s stock, valued at $3,500,719.47. This represents a 63.76 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Julie Szudarek sold 2,000 shares of Root stock in a transaction dated Monday, November 18th. The shares were 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 in the company, valued at approximately $1,445,238.99. This represents a 11.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 246,905 shares of company stock valued at $20,440,479 over the last quarter. Insiders own 11.71% of the company’s stock.

Hedge Funds Weigh In On Root

Several large investors have recently made changes to their positions in ROOT. State Street Corp increased its holdings in shares of Root by 0.3% in the third quarter. State Street Corp now owns 176,891 shares of the company’s stock valued at $6,683,000 after buying an additional 444 shares in the last quarter. Alpha DNA Investment Management LLC lifted its position in shares of Root by 5.5% in the 2nd quarter. Alpha DNA Investment Management LLC now owns 9,306 shares of the company’s stock valued at $480,000 after acquiring an additional 486 shares in the last quarter. Point72 DIFC Ltd acquired a new position in Root in the 3rd quarter worth approximately $33,000. Verition Fund Management LLC raised its stake in Root by 15.2% during the 3rd quarter. Verition Fund Management LLC now owns 9,788 shares of the company’s stock valued at $370,000 after purchasing an additional 1,288 shares during the period. Finally, Vanguard Personalized Indexing Management LLC lifted its holdings in shares of Root by 76.8% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock valued at $306,000 after purchasing an additional 2,576 shares in the last quarter. 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.