Root (NASDAQ:ROOT) Shares Down 4.5% - What's Next?
Root, Inc. (NASDAQ:ROOT) shares fell 4.5% to $131.38, with trading volume down 79% from average levels. Analysts have mixed ratings, with a consensus price target of $122.17. The company reported a quarterly EPS of $1.07, exceeding estimates, and a revenue increase of 37.2% year-over-year. Insider selling was noted, with major shareholder Meyer Malka selling 225,000 shares. Institutional investors hold 59.82% of the company. The stock has a current ratio of 1.39 and a debt-to-equity ratio of 1.65.
Root, Inc. (NASDAQ:ROOT - Get Free Report) shares were down 4.5% during trading on Wednesday . The company traded as low as $133.39 and last traded at $131.38. Approximately 106,556 shares changed hands during trading, a decline of 79% from the average daily volume of 512,462 shares. The stock had previously closed at $137.54.
Analysts Set New Price Targets
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Several analysts have commented on ROOT shares. Wall Street Zen upgraded shares of Root from a "hold" rating to a "buy" rating in a research report on Thursday, May 22nd. Jefferies Financial Group lifted their price target on shares of Root from $115.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, April 11th. UBS Group increased their target price on Root from $67.00 to $130.00 and gave the stock a "neutral" rating in a research note on Friday, March 7th. Scotiabank reiterated a "sector perform" rating on shares of Root in a report on Sunday, March 2nd. Finally, Wells Fargo & Company boosted their price objective on shares of Root from $105.00 to $142.00 and gave the company an "equal weight" rating in a research report on Thursday, May 8th. Six research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $122.17.
View Our Latest Stock Analysis on Root
Root Price Performance
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The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The firm has a market capitalization of $2.03 billion, a price-to-earnings ratio of -107.32 and a beta of 2.40. The company's 50 day moving average is $133.02 and its 200-day moving average is $114.00.
Root (NASDAQ:ROOT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $1.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.62. The business had revenue of $349.40 million for the quarter, compared to analysts' expectations of $305.24 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The firm's revenue for the quarter was up 37.2% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.42) EPS. Equities research analysts anticipate that Root, Inc. will post -0.08 earnings per share for the current year.
Insider Buying and Selling at Root
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In other news, major shareholder Meyer Malka sold 225,000 shares of the stock in a transaction on Wednesday, April 30th. The shares were sold at an average price of $135.81, for a total transaction of $30,557,250.00. Following the completion of the sale, the insider now directly owns 503,800 shares in the company, valued at $68,421,078. This represents a 30.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Doug Ulman sold 2,000 shares of the stock in a transaction dated 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 owns 6,201 shares of the company's stock, valued at approximately $1,085,175. The trade was a 24.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 233,659 shares of company stock worth $31,748,719 over the last quarter. Corporate insiders own 11.76% of the company's stock.
Hedge Funds Weigh In On Root
Several large investors have recently added to or reduced their stakes in the business. Russell Investments Group Ltd. lifted its stake in Root by 651.8% during the 4th quarter. Russell Investments Group Ltd. now owns 421 shares of the company's stock valued at $31,000 after acquiring an additional 365 shares in the last quarter. Twin Tree Management LP purchased a new stake in shares of Root in the first quarter valued at about $37,000. KBC Group NV bought a new position in shares of Root during the first quarter valued at about $48,000. KLP Kapitalforvaltning AS bought a new position in shares of Root during the fourth quarter valued at about $94,000. Finally, Aquatic Capital Management LLC boosted its holdings in Root by 92.1% during the fourth quarter. Aquatic Capital Management LLC now owns 1,537 shares of the company's stock worth $112,000 after purchasing an additional 737 shares during the last quarter. Institutional investors own 59.82% of the company's stock.
Root Company Profile
(Get Free Report)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.
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