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

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $137.75, but opened at $133.62. Root shares last traded at $131.87, with a volume of 162,295 shares traded.

Wall Street Analyst Weigh In

ROOT has been the topic of a number of recent analyst reports. Wells Fargo & Company upped their price target on shares of Root from $105.00 to $142.00 and gave the company an "equal weight" rating in a research note on Thursday, May 8th. Scotiabank reissued a "sector perform" rating on shares of Root in a report on Sunday, March 2nd. UBS Group upped their target price on Root from $67.00 to $130.00 and gave the company a "neutral" rating in a research report on Friday, March 7th. Keefe, Bruyette & Woods raised their target price on Root from $150.00 to $170.00 and gave the stock an "outperform" rating in a research note on Thursday, May 8th. Finally, Jefferies Financial Group lifted their price target on Root from $115.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, April 11th. Six research analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $122.17.

Root Price Performance

The stock has a market cap of $1.95 billion, a price-to-earnings ratio of -102.95 and a beta of 2.40. The stock's 50 day moving average price is $138.25 and its two-hundred day moving average price is $110.32. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65.

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, beating analysts' consensus estimates of $0.45 by $0.62. The company had revenue of $349.40 million during the quarter, compared to the consensus estimate of $305.24 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The firm's quarterly revenue was up 37.2% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.42) earnings per share. Equities research analysts forecast that Root, Inc. will post -0.08 EPS for the current fiscal year.

Insider Activity

In other news, CEO Alexander E. Timm sold 1,144 shares of Root stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $134.01, for a total transaction of $153,307.44. Following the completion of the transaction, the chief executive officer now directly owns 161,625 shares of the company's stock, valued at $21,659,366.25. The trade was a 0.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Doug Ulman sold 2,000 shares of the stock in a transaction on Monday, March 24th. The stock was sold at an average price of $175.00, for a total transaction of $350,000.00. Following the sale, the director now directly owns 6,201 shares in the company, valued at $1,085,175. This trade represents a 24.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 233,659 shares of company stock valued at $31,748,719 in the last quarter. 11.76% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Root

Hedge funds have recently modified their holdings of the company. Russell Investments Group Ltd. increased its stake in shares of Root by 651.8% in the 4th quarter. Russell Investments Group Ltd. now owns 421 shares of the company's stock valued at $31,000 after purchasing an additional 365 shares in the last quarter. Twin Tree Management LP acquired a new stake in Root in the first quarter valued at approximately $37,000. KBC Group NV purchased a new stake in shares of Root in the first quarter valued at approximately $48,000. KLP Kapitalforvaltning AS acquired a new position in shares of Root during the 4th quarter worth approximately $94,000. Finally, Aquatic Capital Management LLC lifted its position in shares of Root by 92.1% during the 4th quarter. Aquatic Capital Management LLC now owns 1,537 shares of the company's stock valued at $112,000 after buying an additional 737 shares in the last quarter. 59.82% of the stock is owned by hedge funds and other institutional investors.

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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