IFC Advisors LLC Acquires New Holdings in Root, Inc. $ROOT

Key Points

• IFC Advisors LLC has acquired a new stake in Root, Inc., purchasing 29,627 shares valued at approximately $3.79 million, making it the firm's 25th largest position.
• Root's stock has shown significant volatility, with a 52-week range between $36.87 and $181.14 and opened at $83.28.
• The company reported strong quarterly earnings, achieving an EPS of $1.29, surpassing estimates, and a revenue increase of 32.4% compared to the prior year.

IFC Advisors LLC acquired a new stake in Root, Inc. (NASDAQ:ROOT - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 29,627 shares of the company's stock, valued at approximately $3,791,000. Root accounts for about 0.7% of IFC Advisors LLC's holdings, making the stock its 25th largest position. IFC Advisors LLC owned approximately 0.19% of Root at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Twin Tree Management LP acquired a new position in Root in the 1st quarter valued at about $37,000. KBC Group NV acquired a new position in Root in the 1st quarter valued at about $48,000. Blueshift Asset Management LLC acquired a new position in Root in the 1st quarter valued at about $204,000. Kingswood Wealth Advisors LLC acquired a new position in Root in the 1st quarter valued at about $220,000. Finally, Cetera Investment Advisers acquired a new position in shares of Root during the first quarter worth about $225,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Price Performance

Root stock opened at $83.28 on Tuesday. Root, Inc. has a 12 month low of $36.87 and a 12 month high of $181.14. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.26 and a quick ratio of 1.26. The business has a 50 day simple moving average of $92.64 and a 200-day simple moving average of $117.80. The stock has a market capitalization of $1.29 billion, a PE ratio of 16.62 and a beta of 2.22.

Root (NASDAQ:ROOT - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $1.29 EPS for the quarter, topping the consensus estimate of $1.06 by $0.23. The business had revenue of $382.90 million during the quarter, compared to analysts' expectations of $348.36 million. Root had a return on equity of 38.24% and a net margin of 6.02%.The company's quarterly revenue was up 32.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.52) earnings per share. Equities analysts predict that Root, Inc. will post -0.08 earnings per share for the current year.

Analyst Ratings Changes

ROOT has been the subject of a number of analyst reports. Weiss Ratings reissued a "hold (c)" rating on shares of Root in a research report on Wednesday, October 8th. Wells Fargo & Company lowered their price target on Root from $120.00 to $89.00 and set an "equal weight" rating for the company in a report on Wednesday, October 8th. Wall Street Zen downgraded Root from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. TD Cowen upped their price target on Root from $51.00 to $125.00 and gave the company a "hold" rating in a report on Tuesday, July 8th. Finally, Zacks Research downgraded Root from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 7th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $118.67.

Insider Buying and Selling at Root

In other Root news, CEO Alexander E. Timm sold 10,861 shares of the company's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $88.88, for a total value of $965,325.68. Following the sale, the chief executive officer owned 157,748 shares of the company's stock, valued at approximately $14,020,642.24. This represents a 6.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the stock in a transaction 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 sale, the insider directly owned 274,226 shares in the company, valued at approximately $24,609,041.24. The trade was a 2.05% decrease in their position. The disclosure for this sale can be found here. 11.71% of the stock is currently owned by corporate insiders.

Root 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.

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