Root (NASDAQ:ROOT) Stock Price Down 6.4% – Time to Sell?

Root, Inc. (NASDAQ:ROOT)’s share price traded down 6.4% during trading on Tuesday . The stock traded as low as $91.98 and last traded at $92.87. 296,236 shares were traded during mid-day trading, a decline of 46% from the average session volume of 550,503 shares. The stock had previously closed at $99.27.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $90.00 price objective (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. Jefferies Financial Group lowered their price objective on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research report on Wednesday, October 9th. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a research report on Thursday, October 3rd. 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 increased their target price on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a research report on Friday, November 1st. Six 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $59.13.

Root Price Performance

The company has a 50 day moving average of $62.32 and a 200 day moving average of $55.59. 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 issued its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $272.77 million. During the same period last year, the company earned ($3.16) EPS. The company’s revenue for the quarter was up 165.1% on a year-over-year basis. On average, sell-side analysts forecast that Root, Inc. will post -1.2 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Meyer Malka sold 50,959 shares of the firm’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 sale, the insider now directly owns 102 shares of the company’s stock, valued at approximately $8,647.56. This trade represents a 99.80 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 value of $192,660.00. Following the sale, the director now directly owns 15,003 shares of the company’s stock, valued at $1,445,238.99. The trade was a 11.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 246,905 shares of company stock valued at $20,440,479 in the last three months. 11.71% of the stock is currently owned by insiders.

Institutional Trading of Root

A number of hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp boosted its holdings in Root by 0.3% during the 3rd quarter. State Street Corp now owns 176,891 shares of the company’s stock valued at $6,683,000 after acquiring an additional 444 shares during the period. Alpha DNA Investment Management LLC boosted its holdings in Root by 5.5% during 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 during the period. Point72 DIFC Ltd purchased a new position in Root during the 3rd quarter valued at about $33,000. Verition Fund Management LLC boosted its holdings 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 acquiring an additional 1,288 shares during the period. Finally, Vanguard Personalized Indexing Management LLC boosted its holdings in Root by 76.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock valued at $306,000 after acquiring an additional 2,576 shares during the period. 59.82% of the stock is owned by institutional investors and hedge funds.

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.