Root (NASDAQ:ROOT) Stock Price Down 7.2% - Here's Why

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s share price fell 7.2% on Tuesday . The company traded as low as $136.40 and last traded at $134.92. 136,412 shares were traded during trading, a decline of 74% from the average session volume of 518,708 shares. The stock had previously closed at $145.41.

Analysts Set New Price Targets

A number of brokerages have recently commented on ROOT. Scotiabank reissued a "sector perform" rating on shares of Root in a report on Sunday, March 2nd. Jefferies Financial Group raised their price target on Root from $115.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, April 11th. Keefe, Bruyette & Woods raised their target price on Root from $150.00 to $170.00 and gave the company an "outperform" rating in a research note on Thursday, May 8th. Wall Street Zen lowered shares of Root from a "buy" rating to a "hold" rating in a report on Saturday. Finally, UBS Group increased their price target on shares of Root from $67.00 to $130.00 and gave the company a "neutral" rating in a report on Friday, March 7th. Six investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $136.40.

Root Stock Down 6.9%

The company has a 50-day moving average of $137.94 and a 200-day moving average of $116.92. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $2.08 billion, a price-to-earnings ratio of -109.90 and a beta of 2.31.

Root (NASDAQ:ROOT - Get Free Report) last posted its earnings results on Wednesday, May 7th. The company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.62. The firm had revenue of $349.40 million during the quarter, compared to analyst estimates of $305.24 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business's quarterly revenue was up 37.2% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.42) EPS. On average, equities analysts predict that Root, Inc. will post -0.08 earnings per share for the current fiscal year.

Insider Transactions at Root

In other news, Director Doug Ulman sold 2,000 shares of the business's stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $175.00, for a total transaction of $350,000.00. Following the transaction, the director now directly owns 6,201 shares in the company, valued at $1,085,175. The trade was a 24.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Alexander E. Timm sold 8,290 shares of the business's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $130.60, for a total value of $1,082,674.00. Following the sale, the chief executive officer now owns 168,609 shares in the company, valued at approximately $22,020,335.40. The trade was a 4.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 254,742 shares of company stock worth $34,553,788. 11.76% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Root

Large investors have recently modified their holdings of the company. T. Rowe Price Investment Management Inc. grew its position in shares of Root by 66.3% during the first quarter. T. Rowe Price Investment Management Inc. now owns 679,696 shares of the company's stock worth $90,699,000 after buying an additional 271,097 shares in the last quarter. Vanguard Group Inc. lifted its position in shares of Root by 0.5% during the 1st quarter. Vanguard Group Inc. now owns 529,555 shares of the company's stock valued at $70,664,000 after acquiring an additional 2,627 shares during the last quarter. Renaissance Technologies LLC raised its position in Root by 41.8% during the fourth quarter. Renaissance Technologies LLC now owns 263,515 shares of the company's stock valued at $19,129,000 after buying an additional 77,699 shares during the period. Invesco Ltd. boosted its position in Root by 5,575.0% during the first quarter. Invesco Ltd. now owns 256,792 shares of the company's stock valued at $34,266,000 after purchasing an additional 252,267 shares during the last quarter. Finally, American Century Companies Inc. bought a new position in shares of Root during the 1st quarter valued at $30,786,000. 59.82% of the stock is currently 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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