Root (NASDAQ:ROOT) Stock Price Down 4.3% - Here's Why

Key Points

• Root, Inc. stock dropped by 4.3% during mid-day trading, with shares declining from a previous close of $100.20 to about $95.88.
• Analysts have mixed views on Root, with a consensus rating of "Hold" and a price target of $123.83, although several firms downgraded their positions recently.
• The company reported quarterly earnings of $1.29 EPS, exceeding expectations, alongside a revenue increase of 32.4% year-over-year.

Shares of Root, Inc. (NASDAQ:ROOT - Get Free Report) traded down 4.3% during mid-day trading on Tuesday . The company traded as low as $97.02 and last traded at $95.88. 60,775 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 547,859 shares. The stock had previously closed at $100.20.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. TD Cowen increased their price target on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research note on Tuesday, July 8th. Wall Street Zen downgraded Root from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. UBS Group restated a "neutral" rating and set a $105.00 target price (down from $140.00) on shares of Root in a research note on Monday, August 18th. Wells Fargo & Company increased their price target on shares of Root from $118.00 to $120.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 7th. Finally, Zacks Research cut shares of Root from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $123.83.

Root Price Performance

The stock's 50-day moving average price is $104.98 and its 200-day moving average price is $125.44. The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of 19.18 and a beta of 2.24. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.82.

Root (NASDAQ:ROOT - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $1.29 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.23. The business had revenue of $382.90 million for the quarter, compared to analyst estimates of $348.36 million. Root had a net margin of 6.02% and a return on equity of 38.24%. The firm's quarterly revenue was up 32.4% on a year-over-year basis. During the same period last year, the business posted ($0.52) earnings per share. Equities research analysts anticipate that Root, Inc. will post -0.08 earnings per share for the current year.

Insider Activity at Root

In other Root news, CEO Alexander E. Timm sold 10,861 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total transaction of $965,325.68. Following the sale, the chief executive officer directly owned 157,748 shares of the company's stock, valued at $14,020,642.24. The trade was a 6.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the business's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total transaction of $516,005.00. Following the transaction, the insider owned 274,226 shares in the company, valued at $24,609,041.24. The trade was a 2.05% decrease in their position. The disclosure for this sale can be found here. Insiders own 11.71% of the company's stock.

Hedge Funds Weigh In On Root

Institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System boosted its position in Root by 12.0% during the fourth quarter. California State Teachers Retirement System now owns 7,477 shares of the company's stock worth $543,000 after purchasing an additional 801 shares during the period. Kingswood Wealth Advisors LLC purchased a new stake in shares of Root in the first quarter worth about $220,000. Cetera Investment Advisers purchased a new stake in shares of Root in the first quarter worth about $225,000. Arizona State Retirement System purchased a new stake in shares of Root in the first quarter worth about $306,000. Finally, Bayforest Capital Ltd purchased a new stake in shares of Root in the first quarter worth about $361,000. 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.

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