Root (NASDAQ:ROOT) Shares Cross Above 200 Day Moving Average - Should You Sell?

Key Points

• Root shares rose 6.1% and crossed above their 200-day moving average, trading at $57.15 versus the $54.15 average.
• Analyst sentiment is mixed but averages to a “Hold”, with a mean price target of $58.75; ratings include one Buy, five Holds and one Sell.
• Root reported quarterly EPS of $0.86, beating the $0.63 consensus, while revenue of $381.3 million came in slightly below estimates of $384.43 million.

Root, Inc. (NASDAQ:ROOT - Get Free Report) shares crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $54.15 and traded as high as $57.57. Root shares last traded at $57.15, with a volume of 209,886 shares changing hands.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on ROOT shares. Weiss Ratings restated a "hold (c)" rating on shares of Root in a research report on Monday, October 26th. TD Cowen lowered Root from a "hold" rating to a "strong sell" rating in a report on Thursday, August 20th. Jefferies Financial Group cut shares of Root from a "buy" rating to a "hold" rating and reduced their target price for the stock from $78.00 to $58.00 in a report on Tuesday, August 11th. Wells Fargo & Company reaffirmed a "cautious" rating on shares of Root in a research report on Monday, October 12th. Finally, Keefe, Bruyette & Woods cut their price objective on Root from $95.00 to $80.00 and set an "outperform" rating for the company in a report on Thursday, August 6th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $58.75.

Root Stock Up 6.1%

The company has a market capitalization of $885.25 million, a P/E ratio of 16.14 and a beta of 3.06. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.02. The firm's fifty day moving average is $51.36 and its 200-day moving average is $54.15.

Root (NASDAQ:ROOT - Get Free Report) last posted its earnings results on Wednesday, November 4th. The company reported $0.86 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.23. Root had a net margin of 3.78% and a return on equity of 19.72%. The firm had revenue of $381.30 million for the quarter, compared to analyst estimates of $384.43 million. As a group, equities research analysts predict that Root, Inc. will post 4.46 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. First Trust Advisors LP raised its holdings in shares of Root by 49.1% in the 1st quarter. First Trust Advisors LP now owns 68,050 shares of the company's stock valued at $3,006,000 after acquiring an additional 22,422 shares in the last quarter. Prosperitas Financial LLC boosted its stake in shares of Root by 4.4% in the 2nd quarter. Prosperitas Financial LLC now owns 27,411 shares of the company's stock valued at $1,533,000 after purchasing an additional 1,149 shares in the last quarter. Zweig DiMenna Associates LLC bought a new position in shares of Root during the 1st quarter valued at $1,193,000. Quantinno Capital Management LP bought a new position in shares of Root during the 1st quarter valued at $920,000. Finally, State of Wyoming purchased a new position in Root in the 3rd quarter worth $289,000. Institutional investors own 59.82% of the company's stock.

Root Company Profile

Root, Inc NASDAQ: ROOT is an insurance technology company that uses mobile technology and data-driven underwriting to provide personal insurance products. The company is best known for its automobile insurance, which is offered through a digital platform designed to allow customers to obtain quotes, purchase coverage and manage policies through a smartphone.

Root's auto insurance model uses information collected through its mobile application, including driving-related data, to evaluate individual driving behavior and help determine eligibility and pricing.

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