Root (NASDAQ:ROOT) Shares Down 6.2% - What's Next?

Root, Inc. (NASDAQ:ROOT - Get Free Report) was down 6.2% during trading on Wednesday . The company traded as low as $127.01 and last traded at $125.67. Approximately 179,955 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 556,635 shares. The stock had previously closed at $134.04.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. Jefferies Financial Group increased their price target on Root from $115.00 to $150.00 and gave the company a "buy" rating in a research note on Friday, April 11th. Wall Street Zen downgraded shares of Root from a "buy" rating to a "hold" rating in a research report on Saturday, June 14th. Wells Fargo & Company raised their price target on shares of Root from $105.00 to $142.00 and gave the stock an "equal weight" rating in a report on Thursday, May 8th. UBS Group upped their price objective on shares of Root from $67.00 to $130.00 and gave the company a "neutral" rating in a research note on Friday, March 7th. Finally, Keefe, Bruyette & Woods increased their price objective on shares of Root from $150.00 to $170.00 and gave the stock an "outperform" rating in a research report on Thursday, May 8th. Six equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $136.40.

Root Price Performance

The stock has a market capitalization of $1.87 billion, a P/E ratio of 38.00 and a beta of 2.31. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.26 and a current ratio of 1.26. The business has a fifty day simple moving average of $139.15 and a 200-day simple moving average of $118.43.

Root (NASDAQ:ROOT - Get Free Report) last issued 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 net margin of 4.11% and a return on equity of 27.33%. The business had revenue of $349.40 million for the quarter, compared to analyst estimates of $305.24 million. During the same period in the prior year, the firm earned ($0.42) earnings per share. Root's revenue was up 37.2% on a year-over-year basis. Sell-side analysts expect that Root, Inc. will post -0.08 earnings per share for the current fiscal year.

Insider Activity at Root

In related news, CEO Alexander E. Timm sold 1,144 shares of the stock in a transaction on Tuesday, April 1st. The stock was sold at an average price of $134.01, for a total value of $153,307.44. Following the transaction, the chief executive officer now directly owns 161,625 shares in the company, valued at $21,659,366.25. This trade represents a 0.70% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Jerri Devard sold 1,895 shares of Root stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $141.50, for a total transaction of $268,142.50. Following the completion of the sale, the director now directly owns 18,532 shares of the company's stock, valued at approximately $2,622,278. The trade was a 9.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold 252,742 shares of company stock valued at $34,203,788 in the last three months. Corporate insiders own 11.71% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Voya Investment Management LLC bought a new position in Root in the 1st quarter valued at about $313,000. Bayforest Capital Ltd bought a new position in shares of Root in the first quarter valued at approximately $361,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Root by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company's stock valued at $686,000 after buying an additional 229 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of Root by 122.2% during the first quarter. AQR Capital Management LLC now owns 10,229 shares of the company's stock valued at $1,365,000 after buying an additional 5,626 shares during the last quarter. Finally, Twin Tree Management LP bought a new stake in Root during the first quarter worth $37,000. 59.82% of the stock is currently owned by institutional investors and hedge funds.

Root Company Profile

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.

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