Root (NASDAQ:ROOT) Shares Gap Down – What’s Next?

Shares of Root, Inc. (NASDAQ:ROOT) gapped down prior to trading 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 traded.

Analyst Ratings Changes

A number of research firms have recently commented on ROOT. Wells Fargo & Company upped their price target on shares of Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a report on Friday, November 1st. UBS Group boosted their price target on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a report on Monday, November 4th. Jefferies Financial Group reduced their price objective on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $90.00 price target (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. Finally, Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a report on Thursday, October 3rd. Five research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $59.13.

Root Stock Performance

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 stock has a market capitalization of $1.56 billion, a PE ratio of -83.33 and a beta of 2.34. The firm has a 50 day moving average price of $53.56 and a 200-day moving average price of $53.75.

Root (NASDAQ:ROOT) last announced its quarterly earnings data on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, beating the consensus estimate of ($0.61) by $1.96. The business had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $272.77 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business’s quarterly revenue was up 165.1% compared to the same quarter last year. During the same period in the previous year, the business posted ($3.16) EPS. Research analysts expect that Root, Inc. will post -1.2 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder Meyer Malka sold 75,839 shares of the firm’s stock in a transaction on Thursday, November 7th. The shares were sold at an average price of $81.21, for a total transaction of $6,158,885.19. Following the sale, the insider now owns 43,107 shares in the company, valued at approximately $3,500,719.47. This trade represents a 63.76 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Julie Szudarek sold 2,000 shares of Root stock in a transaction on Monday, November 18th. The shares were sold at an average price of $96.33, for a total transaction of $192,660.00. Following the completion of the transaction, 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 position. The disclosure for this sale can be found here. In the last three months, insiders have sold 246,905 shares of company stock valued at $20,440,479. Company insiders own 11.71% of the company’s stock.

Institutional Investors Weigh In On Root

Institutional investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD acquired a new position in Root in the 1st quarter worth about $434,000. Tidal Investments LLC purchased a new stake in shares of Root in the first quarter valued at approximately $1,997,000. Bank of New York Mellon Corp acquired a new stake in Root in the 2nd quarter valued at $1,280,000. Rhumbline Advisers grew its position in shares of Root by 2,355.5% in the second quarter. Rhumbline Advisers now owns 11,590 shares of the company’s stock valued at $598,000 after purchasing an additional 11,118 shares during the period. Finally, Vanguard Personalized Indexing Management LLC raised its position in shares of Root by 76.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after purchasing an additional 2,576 shares during the last quarter. 59.82% of the stock is currently 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.