SG Americas Securities LLC Sells 25,345 Shares of Root, Inc. $ROOT

Key Points

• SG Americas Securities LLC cut its Root stake sharply in the first quarter, selling 25,345 shares and reducing its position by 84% to 4,814 shares worth about $213,000.
• Root reported stronger-than-expected quarterly earnings, posting EPS of $2.09 versus the $0.84 estimate, while revenue rose 12.5% year over year to $393.5 million.
• Analyst sentiment remains cautious: Root currently has a consensus “Hold” rating with an average price target of $86, even though the stock recently traded at $64.36.

SG Americas Securities LLC decreased its position in Root, Inc. (NASDAQ:ROOT - Free Report) by 84.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 4,814 shares of the company's stock after selling 25,345 shares during the quarter. SG Americas Securities LLC's holdings in Root were worth $213,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of the company. Russell Investments Group Ltd. increased its holdings in Root by 511.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock valued at $94,000 after purchasing an additional 614 shares during the period. Advisory Services Network LLC purchased a new position in shares of Root during the third quarter valued at approximately $144,000. Tower Research Capital LLC TRC raised its holdings in shares of Root by 237.2% during the second quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company's stock valued at $164,000 after acquiring an additional 899 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in Root in the third quarter worth $194,000. Finally, SBI Securities Co. Ltd. boosted its holdings in Root by 181.8% in the fourth quarter. SBI Securities Co. Ltd. now owns 2,728 shares of the company's stock valued at $197,000 after acquiring an additional 1,760 shares in the last quarter. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Stock Down 0.1%

Shares of ROOT traded down $0.04 on Friday, hitting $64.36. 128,446 shares of the stock traded hands, compared to its average volume of 252,221. Root, Inc. has a one year low of $40.91 and a one year high of $134.00. The company has a market capitalization of $1.02 billion, a PE ratio of 19.27 and a beta of 2.85. The business has a 50 day simple moving average of $56.27 and a 200 day simple moving average of $57.39. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.07 and a current ratio of 1.07.

Root (NASDAQ:ROOT - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.84 by $1.25. The business had revenue of $393.50 million for the quarter, compared to analysts' expectations of $398.16 million. Root had a return on equity of 19.97% and a net margin of 3.58%.The firm's quarterly revenue was up 12.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.07 EPS. As a group, equities analysts forecast that Root, Inc. will post 3.28 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

ROOT has been the topic of a number of research reports. Keefe, Bruyette & Woods cut their target price on shares of Root from $104.00 to $95.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 7th. TD Cowen restated a "hold" rating on shares of Root in a report on Wednesday, June 17th. Zacks Research raised Root from a "strong sell" rating to a "hold" rating in a research report on Monday, June 8th. UBS Group set a $50.00 target price on Root and gave the stock a "neutral" rating in a research report on Monday, May 11th. Finally, Weiss Ratings upgraded Root from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, Root presently has a consensus rating of "Hold" and a consensus price target of $86.00.

Root 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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