Root (NASDAQ:ROOT) Shares Gap Down – Here’s What Happened

Root, Inc. (NASDAQ:ROOT) shares gapped down before the market opened on Friday . The stock had previously closed at $109.40, but opened at $103.17. Root shares last traded at $104.58, with a volume of 110,775 shares trading hands.

Analysts Set New Price Targets

ROOT has been the topic of a number of research reports. UBS Group raised their price target on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. JMP Securities lowered Root from an “outperform” rating to a “market perform” rating in a research note on Friday. Wells Fargo & Company lifted 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. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $90.00 price target (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. Finally, 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. Five equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $59.13.

Root Price Performance

The firm has a 50 day moving average of $53.56 and a 200-day moving average of $53.75. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The company has a market cap of $1.56 billion, a P/E ratio of -83.33 and a beta of 2.34.

Root (NASDAQ:ROOT) last released its 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. The firm had revenue of $305.70 million for the quarter, compared to the consensus estimate of $272.77 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The company’s quarterly revenue was up 165.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($3.16) earnings per share. On average, equities research analysts predict 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 shares were sold at an average price of $96.33, for a total transaction of $192,660.00. Following the sale, the director now directly owns 15,003 shares in the company, valued at approximately $1,445,238.99. This represents a 11.76 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Meyer Malka sold 50,959 shares of the business’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 value of $4,320,304.02. Following the sale, the insider now directly owns 102 shares in the company, valued at $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. Over the last three months, insiders sold 246,905 shares of company stock valued at $20,440,479. Insiders own 11.71% of the company’s stock.

Hedge Funds Weigh In On Root

A number of institutional investors and hedge funds have recently modified their holdings of ROOT. Versor Investments LP bought a new stake in Root in the third quarter worth $216,000. Tidal Investments LLC bought a new stake in shares of Root in the 1st quarter worth about $1,997,000. Driehaus Capital Management LLC purchased a new position in shares of Root during the 2nd quarter worth about $9,154,000. Bank of New York Mellon Corp bought a new position in Root during the 2nd quarter valued at about $1,280,000. Finally, Hood River Capital Management LLC purchased a new stake in Root in the 2nd quarter worth about $9,547,000. Hedge funds and other 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.