Requisite Capital Management LLC Buys Shares of 6,839 Root, Inc. $ROOT

Key Points

• Requisite Capital Management LLC has acquired 6,839 shares of Root, Inc., totaling approximately $875,000, as reported in their recent 13F filing.
• Root, Inc. reported a year-over-year revenue increase of 32.4%, with earnings per share of $1.29 for the quarter, exceeding analysts' expectations.
• Institutional investors collectively own nearly 60% of Root's stock, indicating strong institutional interest in the company.

Requisite Capital Management LLC bought a new stake in Root, Inc. (NASDAQ:ROOT - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 6,839 shares of the company's stock, valued at approximately $875,000.

Several other large investors also recently added to or reduced their stakes in ROOT. Twin Tree Management LP purchased a new position in shares of Root during the 1st quarter worth $37,000. KBC Group NV purchased a new position in shares of Root during the 1st quarter worth $48,000. Blueshift Asset Management LLC purchased a new position in shares of Root during the 1st quarter worth $204,000. Kingswood Wealth Advisors LLC purchased a new position in shares of Root during the 1st quarter worth $220,000. Finally, Cetera Investment Advisers purchased a new position in shares of Root during the 1st quarter worth $225,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Price Performance

ROOT opened at $89.51 on Wednesday. The stock's 50-day moving average price is $98.98 and its 200 day moving average price is $122.49. Root, Inc. has a 12-month low of $36.87 and a 12-month high of $181.14. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.82. The firm has a market cap of $1.38 billion, a price-to-earnings ratio of 17.87 and a beta of 2.24.

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 the consensus estimate of $1.06 by $0.23. Root had a return on equity of 38.24% and a net margin of 6.02%.The firm had revenue of $382.90 million for the quarter, compared to analyst estimates of $348.36 million. During the same quarter in the prior year, the company earned ($0.52) EPS. Root's revenue was up 32.4% on a year-over-year basis. As a group, sell-side analysts expect that Root, Inc. will post -0.08 earnings per share for the current year.

Wall Street Analyst Weigh In

ROOT has been the subject of a number of research analyst reports. Keefe, Bruyette & Woods lowered their price target on Root from $170.00 to $165.00 and set an "outperform" rating for the company in a report on Friday, August 8th. Wells Fargo & Company increased their price target on Root from $118.00 to $120.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. Jefferies Financial Group lowered their price target on Root from $172.00 to $138.00 and set a "buy" rating for the company in a report on Monday, August 11th. UBS Group reiterated a "neutral" rating and set a $105.00 price target (down from $140.00) on shares of Root in a report on Monday, August 18th. Finally, TD Cowen increased their target price on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research note on Tuesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $123.83.

Insider Transactions at Root

In other Root news, CEO Alexander E. Timm sold 10,861 shares of the stock in a transaction dated 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 $14,020,642.24. This trade represents a 6.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the stock in a transaction dated 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 in the company, valued at $24,609,041.24. This represents a 2.05% decrease in their position. The disclosure for this sale can be found here. 11.71% of the stock is owned by company insiders.

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.

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