Root (NASDAQ:ROOT) Shares Gap Down – Should You Sell?

Root, Inc. (NASDAQ:ROOT) gapped down prior to trading on Thursday . The stock had previously closed at $88.82, but opened at $79.84. Root shares last traded at $77.2050, with a volume of 510,226 shares.

Analyst Ratings Changes

ROOT has been the subject of several recent analyst reports. UBS Group reissued a “neutral” rating and issued a $105.00 price target (down previously from $140.00) on shares of Root in a report on Monday, August 18th. Jefferies Financial Group lowered their price target on shares of Root from $172.00 to $138.00 and set a “buy” rating on the stock in a research report on Monday, August 11th. Wall Street Zen cut shares of Root from a “buy” rating to a “hold” rating in a research report on Saturday, August 2nd. Weiss Ratings reissued a “hold (c)” rating on shares of Root in a research report on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Root from $170.00 to $165.00 and set an “outperform” rating on the stock in a research report on Friday, August 8th. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $125.80.

Root Trading Down 10.0%

The company has a market capitalization of $1.24 billion, a price-to-earnings ratio of 16.03 and a beta of 2.21. The business’s 50 day simple moving average is $87.96 and its 200 day simple moving average is $112.65. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.26 and a quick ratio of 1.26.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, November 5th. The company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.08. Root had a return on equity of 38.24% and a net margin of 6.02%.The firm had revenue of $387.80 million for the quarter, compared to the consensus estimate of $363.06 million. During the same period in the previous year, the business earned $1.35 earnings per share. The company’s revenue for the quarter was up 26.9% compared to the same quarter last year. Research analysts anticipate that Root, Inc. will post -0.08 EPS for the current year.

Insider Buying and Selling

In other Root news, insider Mahtiyar Bonakdarpour sold 5,750 shares of Root stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total value of $516,005.00. Following the completion of the sale, the insider directly owned 274,226 shares of the company’s stock, valued at approximately $24,609,041.24. The trade was a 2.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Alexander E. Timm sold 10,861 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $88.88, for a total transaction of $965,325.68. Following the transaction, the chief executive officer directly owned 157,748 shares in the company, valued at approximately $14,020,642.24. This represents a 6.44% decrease in their position. The SEC filing for this sale provides additional information. 11.76% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Root

A number of institutional investors and hedge funds have recently bought and sold shares of ROOT. Gilder Gagnon Howe & Co. LLC grew its position in Root by 3.0% in the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company’s stock valued at $797,000 after acquiring an additional 181 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Root by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company’s stock valued at $686,000 after purchasing an additional 229 shares during the period. Ameritas Investment Partners Inc. grew its holdings in Root by 28.5% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock valued at $139,000 after purchasing an additional 241 shares in the last quarter. Twin Tree Management LP acquired a new stake in Root during the 1st quarter valued at $37,000. Finally, ProShare Advisors LLC increased its stake in Root by 16.9% during the 2nd quarter. ProShare Advisors LLC now owns 2,184 shares of the company’s stock worth $279,000 after buying an additional 315 shares during the period. 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.