Root (NASDAQ:ROOT) Stock Price Down 10.5% – Should You Sell?

Root, Inc. (NASDAQ:ROOT) shares fell 10.5% on Wednesday . The stock traded as low as $89.47 and last traded at $91.14. 151,991 shares changed hands during trading, a decline of 72% from the average session volume of 551,239 shares. The stock had previously closed at $101.86.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. JMP Securities lowered shares of Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Keefe, Bruyette & Woods restated an “outperform” rating and set a $90.00 price objective (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Jefferies Financial Group lowered their target price on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research report on Wednesday, October 9th. Wells Fargo & Company increased their price target on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a research report on Friday, November 1st. Finally, 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. Six investment analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Root has a consensus rating of “Hold” and a consensus price target of $59.13.

Root Stock Performance

The stock has a market capitalization of $1.46 billion, a price-to-earnings ratio of -74.10 and a beta of 2.34. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65. The company’s fifty day simple moving average is $56.30 and its 200 day simple moving average is $54.26.

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

Insider Transactions at Root

In related news, Director Julie Szudarek sold 2,000 shares of the 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 of the company’s stock, valued at $1,445,238.99. This represents a 11.76 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Meyer Malka sold 118,107 shares of the business’s stock in a transaction on Monday, November 11th. The stock was sold at an average price of $82.71, for a total transaction of $9,768,629.97. The disclosure for this sale can be found here. In the last 90 days, insiders sold 246,905 shares of company stock valued at $20,440,479. Company insiders own 11.71% of the company’s stock.

Institutional Trading of Root

Several institutional investors have recently modified their holdings of ROOT. Hood River Capital Management LLC acquired a new stake in shares of Root in the second quarter valued at about $9,547,000. Driehaus Capital Management LLC acquired a new stake in Root during the 2nd quarter valued at approximately $9,154,000. Tidal Investments LLC bought a new position in Root during the 1st quarter worth approximately $1,997,000. Bank of New York Mellon Corp acquired a new position in shares of Root in the 2nd quarter worth approximately $1,280,000. Finally, XTX Topco Ltd bought a new stake in shares of Root in the 3rd quarter valued at $645,000. 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.