Root (NASDAQ:ROOT) Shares Gap Down - What's Next?

Key Points

• Root shares fell sharply, opening at $48.11 versus the prior close of $57.15, before last trading at $51.77.
• Analyst sentiment is mixed but averages to Hold, with a consensus price target of $60.25; recent calls ranged from TD Cowen’s Strong Sell to an Outperform rating from Keefe, Bruyette & Woods.
• Root reported quarterly EPS of $0.86, beating estimates of $0.63, while revenue of $381.3 million fell short of forecasts of $384.4 million.

Root, Inc. (NASDAQ:ROOT - Get Free Report) gapped down prior to trading on Thursday. The stock had previously closed at $57.15, but opened at $48.11. Root shares last traded at $51.7660, with a volume of 54,106 shares changing hands.

Wall Street Analyst Weigh In

ROOT has been the topic of a number of recent research reports. Jefferies Financial Group downgraded Root from a "buy" rating to a "hold" rating and lowered their target price for the company from $78.00 to $58.00 in a research report on Tuesday, August 11th. TD Cowen cut Root from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 20th. Wells Fargo & Company raised their target price on shares of Root from $47.00 to $53.00 and gave the company an "equal weight" rating in a research note on Thursday. Keefe, Bruyette & Woods dropped their price target on shares of Root from $95.00 to $80.00 and set an "outperform" rating on the stock in a research report on Thursday, August 6th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Root in a research note on Monday, October 26th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Root has an average rating of "Hold" and an average target price of $60.25.

Root Stock Down 20.3%

The company has a market cap of $705.26 million, a price-to-earnings ratio of 12.78 and a beta of 3.06. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a 50-day moving average price of $51.36 and a 200 day moving average price of $54.15.

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

Institutional Trading of Root

A number of hedge funds have recently made changes to their positions in ROOT. CoreCap Advisors LLC acquired a new stake in Root during the 2nd quarter worth about $42,000. Sequoia Financial Advisors LLC bought a new stake in shares of Root during the 2nd quarter valued at about $219,000. State of Wyoming bought a new stake in shares of Root during the 3rd quarter valued at about $289,000. Quantinno Capital Management LP acquired a new stake in Root during the first quarter worth approximately $920,000. Finally, Zweig DiMenna Associates LLC acquired a new stake in Root during the first quarter worth approximately $1,193,000. 59.82% of the stock is owned by institutional investors and hedge funds.

About Root

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.