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

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

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Cantor Fitzgerald raised shares of Root to a “strong-buy” rating in a research note on Thursday, October 3rd. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $90.00 price objective (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. UBS Group upped their price objective on shares of 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 shares of Root from an “outperform” rating to a “market perform” rating in a research note on Friday, November 22nd. Finally, Wells Fargo & Company upped their price objective on shares of Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a research note on Friday, November 1st. Six equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $59.13.

Root Stock Down 6.5 %

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’s fifty day simple moving average is $62.32 and its 200 day simple moving average is $55.59.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, topping analysts’ consensus estimates of ($0.61) by $1.96. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business had revenue of $305.70 million during the quarter, compared to the consensus estimate of $272.77 million. During the same period in the previous year, the company posted ($3.16) earnings per share. The firm’s revenue was up 165.1% on a year-over-year basis. On average, sell-side analysts anticipate that Root, Inc. will post -1.2 EPS for the current year.

Insider Activity

In related news, Director Julie Szudarek sold 2,000 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $96.33, for a total value of $192,660.00. Following the transaction, the director now 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 this link. Also, major shareholder Meyer Malka sold 75,839 shares of the stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total transaction of $6,158,885.19. Following the completion of the transaction, 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 position. The disclosure for this sale can be found here. Insiders have sold a total of 246,905 shares of company stock worth $20,440,479 over the last 90 days. 11.71% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Root

Hedge funds and other institutional investors have recently bought and sold shares of the business. Versor Investments LP acquired a new position in Root in the 3rd quarter worth approximately $216,000. Driehaus Capital Management LLC acquired a new position in Root in the 2nd quarter worth approximately $9,154,000. Bank of New York Mellon Corp purchased a new stake in Root in the 2nd quarter worth approximately $1,280,000. Hood River Capital Management LLC purchased a new stake in Root in the 2nd quarter worth approximately $9,547,000. Finally, Venator Management LLC purchased a new stake in Root in the 2nd quarter worth approximately $516,000. Institutional investors and hedge funds 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.