Root (NASDAQ:ROOT) Trading Up 5.7% – Time to Buy?

Root, Inc. (NASDAQ:ROOT) shares rose 5.7% during trading on Wednesday . The stock traded as high as $87.00 and last traded at $87.25. Approximately 121,285 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 321,143 shares. The stock had previously closed at $82.57.

Analysts Set New Price Targets

Several brokerages have issued reports on ROOT. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a report on Thursday, October 3rd. Citizens Jmp lowered shares of Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. Jefferies Financial Group lowered their target price on shares of Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. Wells Fargo & Company lifted their price target on Root from $78.00 to $80.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 14th. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $90.00 price objective (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Six analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $59.38.

Root Trading Up 10.4 %

The stock has a market cap of $1.38 billion, a PE ratio of -74.12 and a beta of 2.55. The stock’s fifty day moving average price is $84.23 and its 200 day moving average price is $63.49. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65.

Root (NASDAQ:ROOT) last posted its earnings results 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. The company had revenue of $305.70 million for the quarter, compared to the consensus estimate of $272.77 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. Root’s revenue was up 165.1% on a year-over-year basis. During the same quarter in the prior year, the company earned ($3.16) earnings per share. On average, sell-side analysts forecast that Root, Inc. will post -1.2 EPS for the current year.

Insider Activity at Root

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

Institutional Trading of Root

Several institutional investors have recently added to or reduced their stakes in the company. Wesbanco Bank Inc. purchased a new position in Root in the fourth quarter worth $218,000. Nordea Investment Management AB boosted its position 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 worth $1,497,000 after purchasing an additional 1,416 shares in the last quarter. Franklin Resources Inc. purchased a new position in Root during the 3rd quarter worth $249,000. Barclays PLC increased its position in Root by 361.6% during the 3rd quarter. Barclays PLC now owns 14,033 shares of the company’s stock valued at $529,000 after buying an additional 10,993 shares in the last quarter. Finally, MML Investors Services LLC acquired a new position in Root during the 3rd quarter valued at about $288,000. Institutional investors own 59.82% of the company’s stock.

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.