Root (NASDAQ:ROOT) Shares Down 1.9% - Time to Sell?

Key Points

• Root shares fell 1.9% to $49.84 in heavy trading, with volume up 144% from its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is largely cautious: Root has an average rating of “Hold” and an average price target of $62.25, while Jefferies downgraded the stock and lowered its target to $58.
• Root beat quarterly earnings expectations, reporting $1.49 EPS versus an $0.83 estimate, though revenue of $389.2 million fell short of forecasts. Institutional investors and hedge funds own 59.82% of the company.

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s share price fell 1.9% on Friday . The stock traded as low as $48.17 and last traded at $49.84. Approximately 400,234 shares changed hands during trading, an increase of 144% from the average daily volume of 163,701 shares. The stock had previously closed at $50.79.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. Jefferies Financial Group downgraded shares of Root from a "buy" rating to a "hold" rating and cut their target price for the company from $78.00 to $58.00 in a research note on Tuesday, August 11th. Keefe, Bruyette & Woods dropped their price target on Root from $95.00 to $80.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Zacks Research raised shares of Root from a "strong sell" rating to a "hold" rating in a research report on Monday, June 8th. Wells Fargo & Company raised their target price on shares of Root from $58.00 to $61.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 9th. Finally, Weiss Ratings raised shares of Root from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $62.25.

Root Stock Down 1.9%

The stock's fifty day simple moving average is $55.57 and its 200-day simple moving average is $53.48. The stock has a market cap of $772.02 million, a P/E ratio of 14.08 and a beta of 2.92. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.02.

Root (NASDAQ:ROOT - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.66. Root had a return on equity of 19.72% and a net margin of 3.78%.The firm had revenue of $389.20 million during the quarter, compared to analysts' expectations of $395.14 million. During the same period in the previous year, the firm earned $1.29 EPS. The company's quarterly revenue was up 1.6% compared to the same quarter last year. As a group, research analysts forecast that Root, Inc. will post 4.46 earnings per share for the current fiscal year.

Institutional Trading of Root

Several large investors have recently bought and sold shares of ROOT. Capital Research Global Investors raised its stake in Root by 31.7% during the fourth quarter. Capital Research Global Investors now owns 654,252 shares of the company's stock worth $47,257,000 after acquiring an additional 157,654 shares in the last quarter. Findell Capital Management LLC boosted its stake in shares of Root by 291.7% in the 4th quarter. Findell Capital Management LLC now owns 235,000 shares of the company's stock valued at $16,974,000 after purchasing an additional 175,000 shares in the last quarter. X Square Capital LLC bought a new stake in shares of Root during the 4th quarter valued at approximately $5,569,000. First Trust Advisors LP grew its holdings in shares of Root by 49.1% during the 1st quarter. First Trust Advisors LP now owns 68,050 shares of the company's stock valued at $3,006,000 after purchasing an additional 22,422 shares during the last quarter. Finally, HB Wealth Management LLC increased its position in Root by 122.2% during the 1st quarter. HB Wealth Management LLC now owns 47,248 shares of the company's stock worth $2,087,000 after purchasing an additional 25,986 shares in the last quarter. 59.82% of the stock is owned by institutional investors and hedge funds.

Root Company Profile

Root, Inc is a technology-driven insurance company that primarily provides personal automobile insurance in the United States. The company uses a mobile application, data analytics and telematics to evaluate driving behavior and help determine individualized insurance pricing. Customers can use the app to obtain quotes, manage policies, access identification cards and file claims.

Root's insurance products are designed around a digital, direct-to-consumer model intended to simplify the purchase and management of coverage.

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