SG Americas Securities LLC Boosts Stock Position in Root, Inc. $ROOT

Key Points

• SG Americas Securities LLC raised its stake in Root by 1,254.2% in Q4, buying 27,932 additional shares to hold 30,159 shares worth about $2.18 million.
• Institutional ownership is high at 59.82%, with other notable investors like Vanguard, New York State Common Retirement Fund and Squarepoint Ops materially increasing positions.
• Root beat its latest quarter estimates (EPS $0.31 vs $0.03; revenue $397M, +21.5% YoY), but the stock trades well below its 1‑year high, has a market cap of ~$672M, and carries a consensus analyst rating of Hold (avg. PT $97.80).

SG Americas Securities LLC increased its stake in shares of Root, Inc. (NASDAQ:ROOT - Free Report) by 1,254.2% during the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 30,159 shares of the company's stock after purchasing an additional 27,932 shares during the period. SG Americas Securities LLC owned 0.19% of Root worth $2,178,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. New York State Common Retirement Fund raised its position in shares of Root by 950.0% in the third quarter. New York State Common Retirement Fund now owns 36,750 shares of the company's stock worth $3,289,000 after buying an additional 33,250 shares in the last quarter. Squarepoint Ops LLC boosted its stake in Root by 754.6% in the second quarter. Squarepoint Ops LLC now owns 20,537 shares of the company's stock worth $2,628,000 after buying an additional 18,134 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Root by 25.9% during the 3rd quarter. Vanguard Group Inc. now owns 724,541 shares of the company's stock valued at $64,854,000 after purchasing an additional 149,064 shares during the last quarter. Proem Advisors LLC purchased a new position in shares of Root in the third quarter worth about $3,279,000. Finally, Palisades Investment Partners LLC purchased a new position in Root in the 3rd quarter worth approximately $7,314,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Price Performance

ROOT opened at $43.21 on Friday. The stock has a 50-day moving average price of $53.21 and a 200-day moving average price of $70.64. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.21 and a quick ratio of 1.21. The firm has a market cap of $672.35 million, a PE ratio of 18.63 and a beta of 2.90. Root, Inc. has a 1 year low of $40.91 and a 1 year high of $162.99.

Root (NASDAQ:ROOT - Get Free Report) last released its quarterly earnings data on Wednesday, February 25th. The company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.28. Root had a net margin of 2.58% and a return on equity of 15.34%. The firm had revenue of $397.00 million during the quarter, compared to analysts' expectations of $381.57 million. During the same period in the previous year, the company earned $1.30 earnings per share. The firm's quarterly revenue was up 21.5% on a year-over-year basis. Sell-side analysts predict that Root, Inc. will post -0.08 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Weiss Ratings upgraded Root from a "sell (d+)" rating to a "hold (c)" rating in a research report on Thursday, February 26th. Zacks Research raised shares of Root from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. Wall Street Zen upgraded shares of Root from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Wells Fargo & Company lowered their price target on shares of Root from $75.00 to $70.00 and set an "equal weight" rating for the company in a research report on Thursday, February 26th. Finally, UBS Group cut their price objective on shares of Root from $90.00 to $52.00 and set a "neutral" rating on the stock in a report on Monday, March 9th. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $97.80.

Root Company Profile

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company's core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.

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