Root (NASDAQ:ROOT) Shares Down 12.2% – Here’s What Happened

Root, Inc. (NASDAQ:ROOT) dropped 12.2% during mid-day trading on Friday . The company traded as low as $71.10 and last traded at $71.1530. Approximately 545,445 shares were traded during trading, a decline of 0% from the average daily volume of 546,938 shares. The stock had previously closed at $81.01.

Wall Street Analyst Weigh In

ROOT has been the subject of a number of recent research reports. Wall Street Zen downgraded shares of Root from a “hold” rating to a “sell” rating in a research note on Saturday. Weiss Ratings reiterated a “hold (c)” rating on shares of Root in a report on Wednesday, October 8th. Wells Fargo & Company boosted their price target on Root from $89.00 to $96.00 and gave the stock an “equal weight” rating in a research report on Thursday. UBS Group restated a “neutral” rating and set a $105.00 price objective (down from $140.00) on shares of Root in a research note on Monday, August 18th. Finally, Zacks Research downgraded Root from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 7th. Two equities 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 company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $125.80.

Root Stock Performance

The business has a 50-day moving average price of $87.51 and a 200-day moving average price of $112.00. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.82. The firm has a market capitalization of $1.22 billion, a price-to-earnings ratio of 23.89 and a beta of 2.21.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, November 5th. The company reported ($0.35) earnings per share for the quarter, topping the consensus estimate of ($0.43) by $0.08. Root had a return on equity of 24.38% and a net margin of 3.80%.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 EPS. The firm’s revenue for the quarter was up 26.9% on a year-over-year basis. As a group, sell-side analysts forecast that Root, Inc. will post -0.08 earnings per share for the current year.

Insider Activity

In other Root news, insider Mahtiyar Bonakdarpour sold 5,750 shares of the business’s stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total transaction of $516,005.00. Following the sale, the insider 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 document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Alexander E. Timm sold 10,861 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief executive officer directly owned 157,748 shares of the company’s stock, valued at approximately $14,020,642.24. This represents a 6.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 11.76% of the company’s stock.

Hedge Funds Weigh In On Root

Several hedge funds have recently made changes to their positions in ROOT. Twin Tree Management LP acquired a new stake in Root during the 1st quarter worth about $37,000. State of Alaska Department of Revenue purchased a new position in shares of Root in the third quarter worth about $50,000. Russell Investments Group Ltd. lifted its holdings in shares of Root by 511.7% during the second quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock worth $94,000 after purchasing an additional 614 shares during the period. Ameritas Investment Partners Inc. lifted its holdings in shares of Root by 28.5% during the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock worth $139,000 after purchasing an additional 241 shares during the period. Finally, Tower Research Capital LLC TRC boosted its position in Root by 237.2% in the second quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock valued at $164,000 after buying an additional 899 shares during the last quarter. 59.82% of the stock is owned by institutional investors and hedge funds.

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.