Root (NASDAQ:ROOT) Stock Price Down 5.1% - Here's What Happened

Key Points

• Root shares fell 5.1% to $48.98 in mid-day trading, with volume down 57% from the stock’s average daily level.
• Analyst sentiment remains cautious: six analysts rate Root “Hold” and one rates it “Buy,” producing an average target price of $62.25. Jefferies downgraded the stock to Hold and cut its target from $78 to $58.
• Root’s latest quarterly results were mixed: earnings of $1.49 per share beat estimates of $0.83, while revenue of $389.2 million fell short of the $395.14 million consensus estimate. Institutional investors own approximately 59.82% of the company.

Root, Inc. (NASDAQ:ROOT - Get Free Report) traded down 5.1% during trading on Wednesday . The company traded as low as $48.80 and last traded at $48.98. 129,503 shares changed hands during mid-day trading, a decline of 57% from the average daily volume of 303,154 shares. The stock had previously closed at $51.59.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ROOT. Weiss Ratings raised Root from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, July 28th. Jefferies Financial Group downgraded Root from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $78.00 to $58.00 in a report on Tuesday. UBS Group set a $50.00 price objective on shares of Root and gave the company a "neutral" rating in a research report on Monday, May 11th. Keefe, Bruyette & Woods reduced their target price on shares of Root from $95.00 to $80.00 and set an "outperform" rating for the company in a research note on Thursday, August 6th. Finally, TD Cowen reissued a "hold" rating on shares of Root in a research report on Wednesday, June 17th. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Root has an average rating of "Hold" and an average target price of $62.25.

Root Stock Down 6.4%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.60. The business has a 50-day simple moving average of $56.90 and a 200-day simple moving average of $54.88. The stock has a market cap of $764.08 million, a P/E ratio of 13.64 and a beta of 2.89.

Root (NASDAQ:ROOT - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.49 EPS for the quarter, beating analysts' consensus estimates of $0.83 by $0.66. The company had revenue of $389.20 million for the quarter, compared to analyst estimates of $395.14 million. Root had a net margin of 3.78% and a return on equity of 19.72%. The company's quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.29 earnings per share. Analysts expect that Root, Inc. will post 3.28 EPS for the current year.

Institutional Investors Weigh In On Root

A number of hedge funds have recently bought and sold shares of ROOT. Gilder Gagnon Howe & Co. LLC raised its position in Root by 3.0% in the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company's stock worth $797,000 after purchasing an additional 181 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Root by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company's stock worth $686,000 after purchasing an additional 229 shares during the period. Gabelli Funds LLC boosted its holdings in Root by 10.9% during the third quarter. Gabelli Funds LLC now owns 5,100 shares of the company's stock valued at $457,000 after purchasing an additional 500 shares in the last quarter. Swiss National Bank boosted its holdings in Root by 2.4% during the fourth quarter. Swiss National Bank now owns 21,500 shares of the company's stock valued at $1,553,000 after purchasing an additional 500 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in shares of Root by 511.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock valued at $94,000 after purchasing an additional 614 shares during the period. 59.82% of the stock is currently owned by institutional investors.

Root Company Profile

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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