Root (NASDAQ:ROOT) Stock Price Down 5.5% - Here's What Happened

Key Points

• Root’s stock fell 5.5% to approximately $54.99 during Thursday trading, with volume substantially below its average daily level.
• Analyst sentiment is broadly cautious: Root has an average rating of “Hold”, with one Buy, five Hold, and one Sell rating, and a consensus price target of $62.25.
• Root beat quarterly earnings expectations, reporting $1.49 EPS versus $0.83 expected, while revenue of $389.2 million fell slightly short of forecasts but increased 1.6% year over year.

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s stock price traded down 5.5% during trading on Thursday . The company traded as low as $55.25 and last traded at $54.9850. 58,065 shares traded hands during mid-day trading, a decline of 81% from the average session volume of 300,032 shares. The stock had previously closed at $58.19.

Analyst Ratings Changes

A number of research firms recently weighed in on ROOT. UBS Group set a $50.00 target price on shares of Root and gave the stock a "neutral" rating in a report on Monday, May 11th. Jefferies Financial Group cut Root from a "buy" rating to a "hold" rating and cut their price objective for the company from $78.00 to $58.00 in a research report on Tuesday, August 11th. TD Cowen downgraded shares of Root from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 20th. Wells Fargo & Company boosted their target price on shares of Root from $58.00 to $61.00 and gave the company an "equal weight" rating in a research report on Thursday, July 9th. Finally, Weiss Ratings upgraded Root from a "hold (c-)" rating to a "hold (c)" rating in a research note 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 stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $62.25.

Root Price Performance

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 company has a market capitalization of $848.71 million, a P/E ratio of 15.47 and a beta of 2.89. The firm's fifty day moving average is $56.94 and its 200 day moving average is $54.04.

Root (NASDAQ:ROOT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.49 earnings per share for the quarter, topping 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 for the quarter, compared to the consensus estimate of $395.14 million. During the same period in the prior year, the business posted $1.29 earnings per share. The company's revenue for the quarter was up 1.6% on a year-over-year basis. As a group, analysts predict that Root, Inc. will post 3.28 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of ROOT. California State Teachers Retirement System grew its holdings in Root by 5,777.7% in the second quarter. California State Teachers Retirement System now owns 3,897,736 shares of the company's stock worth $217,961,000 after purchasing an additional 3,831,422 shares during the last quarter. Millennium Management LLC increased its position in Root by 780.1% during the 4th quarter. Millennium Management LLC now owns 220,815 shares of the company's stock valued at $15,949,000 after buying an additional 195,725 shares in the last quarter. UBS Group AG boosted its holdings in Root by 372.1% in the third quarter. UBS Group AG now owns 228,738 shares of the company's stock worth $20,474,000 after acquiring an additional 180,289 shares in the last quarter. Findell Capital Management LLC increased its stake in Root by 291.7% during 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. Finally, Capital Research Global Investors lifted its position in Root by 31.7% during the 4th 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 during the period. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

About Root

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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