Root (NASDAQ:ROOT) Shares Down 3.5% – Here’s Why

Root, Inc. (NASDAQ:ROOT)’s stock price dropped 3.5% during trading on Wednesday . The stock traded as low as $123.67 and last traded at $124.04. Approximately 491,807 shares changed hands during mid-day trading, a decline of 5% from the average daily volume of 518,967 shares. The stock had previously closed at $128.60.

Analyst Ratings Changes

A number of equities analysts have weighed in on ROOT shares. Scotiabank reissued a “sector perform” rating on shares of Root in a research note on Sunday, March 2nd. UBS Group lifted their price target on Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, March 7th. Finally, Wells Fargo & Company restated a “buy” rating on shares of Root in a research report on Sunday, March 2nd. Five analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $88.33.

Root Stock Down 3.5 %

The business’s 50 day moving average price is $123.38 and its 200-day moving average price is $87.26. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The firm has a market capitalization of $1.89 billion, a PE ratio of -100.85 and a beta of 2.48.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, February 26th. The company reported $1.30 earnings per share for the quarter, beating the consensus estimate of ($0.63) by $1.93. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The firm had revenue of $326.70 million during the quarter, compared to the consensus estimate of $287.79 million. As a group, equities research analysts forecast that Root, Inc. will post -0.08 earnings per share for the current year.

Insider Activity

In other news, Director Doug Ulman sold 2,000 shares of the stock in a transaction on Monday, March 24th. The stock was sold at an average price of $175.00, for a total value of $350,000.00. Following the sale, the director now directly owns 6,201 shares in the company, valued at approximately $1,085,175. This trade represents a 24.39 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 11.71% of the company’s stock.

Institutional Investors Weigh In On Root

Several large investors have recently bought and sold shares of ROOT. FMR LLC raised its holdings in Root by 966.2% in the third quarter. FMR LLC now owns 18,040 shares of the company’s stock valued at $682,000 after acquiring an additional 16,348 shares in the last quarter. Barclays PLC raised its holdings in shares of Root by 361.6% in the 3rd quarter. Barclays PLC now owns 14,033 shares of the company’s stock valued at $529,000 after purchasing an additional 10,993 shares in the last quarter. Nordea Investment Management AB lifted its position in shares of Root by 7.3% during the 4th quarter. Nordea Investment Management AB now owns 20,697 shares of the company’s stock worth $1,497,000 after purchasing an additional 1,416 shares during the last quarter. Point72 Asset Management L.P. acquired a new position in shares of Root during the third quarter worth $428,000. Finally, Franklin Resources Inc. purchased a new position in Root in the third quarter valued at $249,000. Hedge funds and other institutional investors own 59.82% of the company’s stock.

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.