Jefferies Financial Group Inc. Acquires New Holdings in Root, Inc. (NASDAQ:ROOT)

Key Points

• Jefferies Financial Group Inc. has acquired a $1.14 million stake in Root, Inc. by purchasing 8,534 shares, which now represents about 0.06% of the company.
• Root's stock has seen significant trading activity, with a recent surge to $125.54 per share, reflecting a market capitalization of $1.93 billion.
• Analysts have set varying price targets for Root, with Jefferies raising its target from $115.00 to $150.00, indicating a generally positive outlook among several brokerages.

Jefferies Financial Group Inc. acquired a new position in Root, Inc. (NASDAQ:ROOT - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 8,534 shares of the company's stock, valued at approximately $1,139,000. Jefferies Financial Group Inc. owned 0.06% of Root at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the business. Bayforest Capital Ltd purchased a new position in shares of Root during the first quarter valued at approximately $361,000. Bryce Point Capital LLC bought a new position in shares of Root in the first quarter worth about $519,000. TD Asset Management Inc grew its holdings in shares of Root by 239.8% in the first quarter. TD Asset Management Inc now owns 12,232 shares of the company's stock worth $1,632,000 after purchasing an additional 8,632 shares during the last quarter. HB Wealth Management LLC bought a new position in shares of Root in the first quarter worth about $2,837,000. Finally, Cetera Investment Advisers bought a new position in shares of Root in the first quarter worth about $225,000. Hedge funds and other institutional investors own 59.82% of the company's stock.

Root Stock Down 2.4%

ROOT traded down $2.99 during trading hours on Wednesday, hitting $122.55. 979,522 shares of the company's stock were exchanged, compared to its average volume of 530,282. Root, Inc. has a 12-month low of $34.04 and a 12-month high of $181.14. The firm has a 50 day moving average of $129.68 and a 200 day moving average of $127.85. The firm has a market cap of $1.88 billion, a P/E ratio of 38.30 and a beta of 2.25. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.87.

Root (NASDAQ:ROOT - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $1.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.85. Root had a net margin of 4.11% and a return on equity of 27.33%. During the same period in the previous year, the business posted ($0.52) earnings per share. The business's revenue for the quarter was up 32.4% on a year-over-year basis. Analysts predict that Root, Inc. will post -0.08 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Wells Fargo & Company lowered their price objective on shares of Root from $142.00 to $118.00 and set an "equal weight" rating for the company in a research note on Thursday, July 10th. TD Cowen upped their price objective on shares of Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research note on Tuesday, July 8th. Jefferies Financial Group upped their price objective on shares of Root from $115.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, April 11th. Keefe, Bruyette & Woods upped their price objective on shares of Root from $150.00 to $170.00 and gave the stock an "outperform" rating in a research note on Thursday, May 8th. Finally, Wall Street Zen lowered shares of Root from a "buy" rating to a "hold" rating in a research report on Saturday. Seven equities research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $130.50.

Insider Activity at Root

In other Root news, insider Mahtiyar Bonakdarpour sold 5,256 shares of the company's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $130.60, for a total transaction of $686,433.60. Following the completion of the transaction, the insider owned 281,645 shares in the company, valued at approximately $36,782,837. This represents a 1.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Alexander E. Timm sold 8,290 shares of the stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $130.60, for a total transaction of $1,082,674.00. Following the completion of the transaction, the chief executive officer owned 168,609 shares of the company's stock, valued at $22,020,335.40. This represents a 4.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 21,083 shares of company stock worth $2,805,069 in the last 90 days. Corporate insiders own 11.71% of the company's stock.

About Root

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.