Root (NASDAQ:ROOT) Shares Down 8.7% on Insider Selling

Shares of Root, Inc. (NASDAQ:ROOT) traded down 8.7% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $73.47 and last traded at $74.20. 342,556 shares changed hands during mid-day trading, a decline of 38% from the average session volume of 549,470 shares. The stock had previously closed at $81.30.

Specifically, major shareholder Meyer Malka sold 118,107 shares of the business’s stock in a transaction on Monday, November 11th. The stock was sold at an average price of $82.71, for a total transaction of $9,768,629.97. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Meyer Malka sold 75,839 shares of the firm’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the sale, the insider now directly owns 43,107 shares of the company’s stock, valued at $3,500,719.47. This trade represents a 63.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analyst Ratings Changes

Several equities research analysts recently issued reports on ROOT shares. Keefe, Bruyette & Woods restated an “outperform” rating and set a $90.00 price objective (up from $82.00) on shares of Root in a research report on Tuesday, November 5th. Wells Fargo & Company raised 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. Jefferies Financial Group decreased 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. JMP Securities reiterated a “market outperform” rating and issued a $90.00 price objective on shares of Root in a research report on Tuesday, October 15th. Finally, UBS Group lifted their target price on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research report on Monday, November 4th. Four equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $59.13.

Root Price 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 firm has a market cap of $1.19 billion, a price-to-earnings ratio of -61.42 and a beta of 2.34. The company’s 50-day moving average price is $46.50 and its 200-day moving average price is $52.31.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, beating the consensus estimate of ($0.61) by $1.96. The company 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 firm’s revenue was up 165.1% compared to the same quarter last year. During the same quarter last year, the company posted ($3.16) EPS. On average, equities research analysts forecast that Root, Inc. will post -1.2 EPS for the current year.

Institutional Investors Weigh In On Root

Several large investors have recently bought and sold shares of the stock. Quantbot Technologies LP acquired a new position in shares of Root during the first quarter worth about $431,000. Price T Rowe Associates Inc. MD purchased a new stake in shares of Root in the 1st quarter valued at approximately $434,000. Tidal Investments LLC acquired a new stake in shares of Root in the 1st quarter valued at $1,997,000. Bank of New York Mellon Corp purchased a new stake in shares of Root during the 2nd quarter worth $1,280,000. Finally, Rhumbline Advisers grew its stake in shares of Root by 2,355.5% during the second quarter. Rhumbline Advisers now owns 11,590 shares of the company’s stock worth $598,000 after purchasing an additional 11,118 shares in the last quarter. Hedge funds and other institutional investors 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.