Root (NASDAQ:ROOT) Stock Price Down 10.5% – What’s Next?

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

Analysts Set New Price Targets

A number of research firms have weighed in on ROOT. Cantor Fitzgerald raised shares of Root to a “strong-buy” rating in a report on Thursday, October 3rd. UBS Group boosted their price target on shares of Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research report on Monday, November 4th. JMP Securities downgraded shares of Root from an “outperform” rating to a “market perform” rating in a research note on Friday, November 22nd. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $90.00 target price (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. Finally, Citizens Jmp cut Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. 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. According to 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 fifty day moving average of $58.71 and a 200-day moving average of $54.84. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $305.70 million for the quarter, compared to the consensus estimate of $272.77 million. During the same period last year, the business posted ($3.16) EPS. The company’s revenue was up 165.1% on a year-over-year basis. Analysts predict that Root, Inc. will post -1.2 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Root news, Director Julie Szudarek sold 2,000 shares of Root stock in a transaction that occurred on 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 owns 15,003 shares of the company’s stock, valued at approximately $1,445,238.99. The trade was a 11.76 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Meyer Malka sold 50,959 shares of the 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 transaction, 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 ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 246,905 shares of company stock worth $20,440,479. 11.71% of the stock is owned by insiders.

Institutional Investors Weigh In On Root

Several institutional investors have recently made changes to their positions in the stock. Point72 DIFC Ltd acquired a new stake in shares of Root in the third quarter valued at about $33,000. MetLife Investment Management LLC lifted its position in shares of Root by 129.1% during the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after acquiring an additional 2,889 shares during the period. Versor Investments LP purchased a new stake in shares of Root during the 3rd quarter worth approximately $216,000. Franklin Resources Inc. acquired a new stake in shares of Root in the 3rd quarter worth approximately $249,000. Finally, Algert Global LLC acquired a new position in Root during the second quarter worth $288,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.