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

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

Analysts Set New Price Targets

Several research firms have recently commented on ROOT. Keefe, Bruyette & Woods reiterated an “outperform” rating and issued a $90.00 price target (up from $82.00) on shares of Root in a research report on Tuesday, November 5th. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a report on Thursday, October 3rd. Jefferies Financial Group cut their price target on Root from $84.00 to $72.00 and set a “buy” rating for the company in a report on Wednesday, October 9th. UBS Group increased their price objective on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research note on Monday, November 4th. Finally, Wells Fargo & Company upped their target price on shares of Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a report on Friday, November 1st. Six investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $59.13.

Root Trading Down 2.7 %

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 business has a 50 day simple moving average of $58.71 and a 200-day simple moving average of $54.84.

Root (NASDAQ:ROOT) last released its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.61) by $1.96. The firm had revenue of $305.70 million during 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%. Root’s revenue was up 165.1% compared to the same quarter last year. During the same period in the previous year, the firm earned ($3.16) earnings per share. Sell-side analysts expect that Root, Inc. will post -1.2 earnings per share for the current year.

Insider Transactions at Root

In other news, major shareholder Meyer Malka sold 118,107 shares of the business’s stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $82.71, for a total transaction of $9,768,629.97. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Julie Szudarek sold 2,000 shares of the firm’s stock in a transaction that occurred 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 owns 15,003 shares in the company, 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. Insiders sold a total of 246,905 shares of company stock worth $20,440,479 in the last ninety days. Insiders own 11.71% of the company’s stock.

Institutional Trading of Root

Institutional investors have recently added to or reduced their stakes in the business. Point72 DIFC Ltd acquired a new position in shares of Root during the third quarter worth about $33,000. MetLife Investment Management LLC lifted its position in Root by 129.1% during the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock worth $194,000 after acquiring an additional 2,889 shares in the last quarter. Algert Global LLC acquired a new position in Root during the 2nd quarter worth approximately $288,000. Versor Investments LP purchased a new position in Root in the 3rd quarter worth approximately $216,000. Finally, Vanguard Personalized Indexing Management LLC grew its position in Root by 76.8% in the second 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 in the last quarter. 59.82% of the stock is owned by hedge funds and other institutional investors.

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.