Knollwood Investment Advisory LLC Buys Shares of 28,110 Root, Inc. $ROOT

Key Points

• Knollwood Investment Advisory LLC has purchased a new position in Root, Inc., acquiring 28,110 shares valued at approximately $3.75 million, representing about 0.18% of the company's stock.
• Other institutional investors have also increased their stakes in Root, with significant purchases from T. Rowe Price and Invesco Ltd., leading to institutional investors owning 59.82% of the company's stock.
• Root, Inc. reported strong Q2 earnings with an EPS of $1.29, exceeding analysts' expectations, and a revenue of $382.90 million, marking a 32.4% increase year-over-year.

Knollwood Investment Advisory LLC purchased a new stake in shares of Root, Inc. (NASDAQ:ROOT - Free Report) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 28,110 shares of the company's stock, valued at approximately $3,751,000. Knollwood Investment Advisory LLC owned 0.18% of Root as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its stake in Root by 12.0% during the fourth quarter. California State Teachers Retirement System now owns 7,477 shares of the company's stock valued at $543,000 after acquiring an additional 801 shares during the period. Mariner LLC bought a new stake in shares of Root in the 4th quarter valued at approximately $217,000. Kingswood Wealth Advisors LLC bought a new stake in shares of Root in the 1st quarter valued at approximately $220,000. Price T Rowe Associates Inc. MD bought a new stake in shares of Root in the 4th quarter valued at approximately $417,000. Finally, Barclays PLC grew its stake in shares of Root by 9.4% in the 4th quarter. Barclays PLC now owns 15,358 shares of the company's stock valued at $1,115,000 after purchasing an additional 1,325 shares during the period. 59.82% of the stock is currently owned by institutional investors.

Root Stock Performance

Root stock traded down $2.2010 during midday trading on Monday, reaching $88.8090. 325,273 shares of the company's stock were exchanged, compared to its average volume of 561,424. The stock's 50-day simple moving average is $116.62 and its 200 day simple moving average is $128.05. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.26 and a current ratio of 1.26. The firm has a market cap of $1.37 billion, a price-to-earnings ratio of 17.82 and a beta of 2.25. Root, Inc. has a 52 week low of $34.04 and a 52 week high of $181.14.

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

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on ROOT shares. Wall Street Zen lowered Root from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. TD Cowen increased their price target on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research report on Tuesday, July 8th. UBS Group reaffirmed a "neutral" rating and set a $105.00 price objective (down previously from $140.00) on shares of Root in a report on Monday, August 18th. Jefferies Financial Group reduced their price objective on Root from $172.00 to $138.00 and set a "buy" rating on the stock in a report on Monday, August 11th. Finally, Keefe, Bruyette & Woods reduced their price target on Root from $170.00 to $165.00 and set an "outperform" rating on the stock in a research report on Friday, August 8th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, Root currently has a consensus rating of "Hold" and an average target price of $123.83.

Insider Activity at Root

In other news, insider Mahtiyar Bonakdarpour sold 5,256 shares of the business's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $130.60, for a total transaction of $686,433.60. Following the completion of the sale, the insider owned 281,645 shares in the company, valued at $36,782,837. The trade was a 1.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Beth A. Birnbaum sold 2,852 shares of the business's stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $138.33, for a total value of $394,517.16. Following the completion of the sale, the director owned 14,280 shares of the company's stock, valued at approximately $1,975,352.40. This trade represents a 16.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 21,083 shares of company stock valued at $2,805,069. Insiders own 11.71% of the company's stock.

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.