Root (NASDAQ:ROOT) Stock Price Down 6.9% - Time to Sell?

Root, Inc. (NASDAQ:ROOT - Get Free Report) traded down 6.9% during mid-day trading on Monday . The stock traded as low as $122.51 and last traded at $122.28. 241,895 shares changed hands during trading, a decline of 53% from the average session volume of 520,164 shares. The stock had previously closed at $131.32.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Jefferies Financial Group lifted their target price on Root from $115.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, April 11th. Wells Fargo & Company decreased their target price on Root from $142.00 to $118.00 and set an "equal weight" rating for the company in a research report on Thursday, July 10th. Keefe, Bruyette & Woods increased their price objective on shares of Root from $150.00 to $170.00 and gave the company an "outperform" rating in a report on Thursday, May 8th. TD Cowen lifted their target price on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research report on Tuesday, July 8th. Finally, Wall Street Zen upgraded Root from a "hold" rating to a "buy" rating in a research note on Saturday, July 12th. 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. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $130.50.

Root Stock Performance

The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.87. The stock has a 50 day simple moving average of $133.40 and a two-hundred day simple moving average of $124.81. The stock has a market capitalization of $1.87 billion, a P/E ratio of 37.98 and a beta of 2.26.

Root (NASDAQ:ROOT - Get Free Report) last posted its quarterly earnings results on Wednesday, May 7th. The company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.45 by $0.62. Root had a return on equity of 27.33% and a net margin of 4.11%. The firm had revenue of $349.40 million during the quarter, compared to analyst estimates of $305.24 million. During the same period last year, the company earned ($0.42) earnings per share. The business's revenue for the quarter was up 37.2% on a year-over-year basis. On average, equities 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 8,290 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $130.60, for a total value of $1,082,674.00. Following the transaction, the chief executive officer directly owned 168,609 shares in the company, valued at approximately $22,020,335.40. This represents a 4.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Jerri Devard sold 1,895 shares of the 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 transaction, the director directly owned 18,532 shares in the company, valued at $2,622,278. This trade represents a 9.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 246,083 shares of company stock valued at $33,362,319. Insiders own 11.71% of the company's stock.

Institutional Trading of Root

A number of hedge funds have recently made changes to their positions in the stock. Bank of New York Mellon Corp boosted its stake in shares of Root by 36.0% in the 4th quarter. Bank of New York Mellon Corp now owns 24,438 shares of the company's stock valued at $1,774,000 after purchasing an additional 6,465 shares in the last quarter. Raymond James Financial Inc. bought a new position in shares of Root during the fourth quarter worth about $1,952,000. Swiss National Bank increased its holdings in Root by 15.6% in the fourth quarter. Swiss National Bank now owns 15,600 shares of the company's stock worth $1,132,000 after purchasing an additional 2,100 shares in the last quarter. Teacher Retirement System of Texas purchased a new position in Root in the fourth quarter worth $354,000. Finally, KLP Kapitalforvaltning AS bought a new stake in shares of Root during the 4th quarter valued at $94,000. 59.82% of the stock is owned by hedge funds and other institutional investors.

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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