Root (NASDAQ:ROOT) Stock Price Down 6.1% – Here’s What Happened

Root, Inc. (NASDAQ:ROOT)’s stock price traded down 6.1% on Monday . The stock traded as low as $90.00 and last traded at $91.68. 223,344 shares changed hands during trading, a decline of 59% from the average session volume of 547,199 shares. The stock had previously closed at $97.68.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on ROOT. Keefe, Bruyette & Woods reiterated an “outperform” rating and issued a $90.00 price target (up previously from $82.00) on shares of Root in a research note on Tuesday, November 5th. Citizens Jmp downgraded shares of Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. UBS Group increased their target price on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research note on Monday, November 4th. Wells Fargo & Company lifted their price target 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. Finally, Jefferies Financial Group decreased their target price on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a research note on Wednesday, October 9th. Six investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $59.13.

Root Stock Performance

The business’s fifty day moving average is $68.74 and its 200-day moving average is $56.90. 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 company has a market cap of $1.23 billion, a PE ratio of -67.14 and a beta of 2.47.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts’ expectations of $272.77 million. During the same quarter last year, the company posted ($3.16) EPS. The company’s revenue was up 165.1% compared to the same quarter last year. As a group, research analysts predict that Root, Inc. will post -1.2 EPS for the current fiscal year.

Insider Buying and Selling at Root

In other Root news, Director Julie Szudarek sold 2,000 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $96.33, for a total transaction of $192,660.00. Following the sale, the director now directly owns 15,003 shares of the company’s stock, valued at $1,445,238.99. This trade represents a 11.76 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Meyer Malka sold 75,839 shares of the company’s stock in a transaction dated 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 transaction, the insider now directly owns 43,107 shares of the company’s stock, 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. Over the last quarter, insiders sold 246,905 shares of company stock valued at $20,440,479. Company insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Point72 DIFC Ltd purchased a new position in Root during the third quarter valued at $33,000. MetLife Investment Management LLC increased its holdings in shares of Root by 129.1% in the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock worth $194,000 after buying an additional 2,889 shares during the last quarter. Versor Investments LP purchased a new stake in shares of Root during the 3rd quarter valued at about $216,000. Franklin Resources Inc. purchased a new stake in Root during the third quarter valued at approximately $249,000. Finally, Algert Global LLC bought a new stake in shares of Root in the 2nd quarter valued at approximately $288,000. 59.82% of the stock is currently owned by 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.