Root (NASDAQ:ROOT) Shares Down 4.5% - Here's What Happened

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s share price fell 4.5% during mid-day trading on Wednesday . The company traded as low as $133.39 and last traded at $131.38. 106,556 shares were traded during trading, a decline of 79% from the average session volume of 512,462 shares. The stock had previously closed at $137.54.

Analysts Set New Price Targets

A number of research firms recently issued reports on ROOT. Wall Street Zen upgraded shares of Root from a "hold" rating to a "buy" rating in a research report on Thursday, May 22nd. Scotiabank restated a "sector perform" rating on shares of Root in a report on Sunday, March 2nd. UBS Group upped their price objective on shares of Root from $67.00 to $130.00 and gave the stock a "neutral" rating in a report on Friday, March 7th. Jefferies Financial Group upped their price objective on shares of Root from $115.00 to $150.00 and gave the stock a "buy" rating in a report on Friday, April 11th. Finally, Keefe, Bruyette & Woods upped their price objective on shares of Root from $150.00 to $170.00 and gave the stock an "outperform" rating in a report on Thursday, May 8th. Six investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, Root currently has a consensus rating of "Moderate Buy" and a consensus target price of $122.17.

Root Stock Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The stock has a market cap of $2.14 billion, a P/E ratio of -113.15 and a beta of 2.31. The company's 50 day moving average price is $133.07 and its 200-day moving average price is $114.44.

Root (NASDAQ:ROOT - Get Free Report) last posted its earnings results on Wednesday, May 7th. The company reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.62. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The firm had revenue of $349.40 million during the quarter, compared to analyst estimates of $305.24 million. During the same quarter in the prior year, the business posted ($0.42) EPS. The business's revenue was up 37.2% compared to the same quarter last year. Equities analysts forecast that Root, Inc. will post -0.08 EPS for the current fiscal year.

Insider Transactions at Root

In related news, insider Mahtiyar Bonakdarpour sold 5,256 shares of the stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $130.60, for a total transaction of $686,433.60. Following the completion of the transaction, the insider now owns 281,645 shares in the company, valued at approximately $36,782,837. This represents a 1.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Alexander E. Timm sold 1,144 shares of the stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $134.01, for a total transaction of $153,307.44. Following the transaction, the chief executive officer now owns 161,625 shares of the company's stock, valued at approximately $21,659,366.25. The trade was a 0.70% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 247,205 shares of company stock worth $33,517,827 in the last quarter. 11.76% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Root

Several institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Root by 3.6% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,912 shares of the company's stock valued at $357,000 after buying an additional 171 shares during the period. MetLife Investment Management LLC boosted its position in Root by 5.0% during the fourth quarter. MetLife Investment Management LLC now owns 5,382 shares of the company's stock worth $391,000 after purchasing an additional 255 shares during the period. Legal & General Group Plc boosted its position in Root by 3.6% during the fourth quarter. Legal & General Group Plc now owns 7,955 shares of the company's stock worth $577,000 after purchasing an additional 273 shares during the period. Twin Tree Management LP bought a new position in Root during the first quarter worth about $37,000. Finally, KBC Group NV bought a new position in Root during the first quarter worth about $48,000. Institutional investors own 59.82% of the company's stock.

About Root

Root, Inc provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.