Root (NASDAQ:ROOT) Shares Up 4.9% - Here's Why

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s stock price shot up 4.9% during mid-day trading on Thursday . The company traded as high as $162.75 and last traded at $162.18. 151,440 shares changed hands during trading, a decline of 71% from the average session volume of 517,548 shares. The stock had previously closed at $154.57.

Analyst Ratings Changes

Several brokerages have weighed in on ROOT. Scotiabank reaffirmed a "sector perform" rating on shares of Root in a report on Sunday, March 2nd. Wells Fargo & Company raised their price target on Root from $105.00 to $142.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 8th. Wall Street Zen raised Root from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd. UBS Group increased their price objective on shares of Root from $67.00 to $130.00 and gave the stock a "neutral" rating in a research note on Friday, March 7th. Finally, Keefe, Bruyette & Woods raised their target price on shares of Root from $150.00 to $170.00 and gave the company an "outperform" rating in a report on Thursday, May 8th. Five 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. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $136.40.

Root Stock Performance

The stock has a market cap of $2.33 billion, a price-to-earnings ratio of -123.09 and a beta of 2.31. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65. The company has a 50 day simple moving average of $136.42 and a 200 day simple moving average of $116.05.

Root (NASDAQ:ROOT - Get Free Report) last released its quarterly earnings data on Wednesday, May 7th. The company reported $1.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.62. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business had revenue of $349.40 million during the quarter, compared to analysts' expectations of $305.24 million. During the same period in the prior year, the company earned ($0.42) EPS. The firm's quarterly revenue was up 37.2% compared to the same quarter last year. As a group, equities research analysts forecast that Root, Inc. will post -0.08 EPS for the current year.

Insider Activity at Root

In other news, major shareholder Meyer Malka sold 225,000 shares of Root stock in a transaction dated Wednesday, April 30th. The stock was sold at an average price of $135.81, for a total transaction of $30,557,250.00. Following the sale, the insider now directly owns 503,800 shares of the company's stock, valued at approximately $68,421,078. This trade represents a 30.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Alexander E. Timm sold 1,144 shares of the business's stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $134.01, for a total transaction of $153,307.44. Following the sale, the chief executive officer now directly owns 161,625 shares in the company, valued at $21,659,366.25. The trade was a 0.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 254,742 shares of company stock valued at $34,553,788 in the last 90 days. 11.76% of the stock is owned by corporate insiders.

Institutional Trading of Root

Institutional investors have recently modified their holdings of the business. Bayforest Capital Ltd acquired a new position in Root during the 1st quarter worth about $361,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Root by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company's stock worth $686,000 after acquiring an additional 229 shares during the period. AQR Capital Management LLC boosted its holdings in Root by 122.2% in the first quarter. AQR Capital Management LLC now owns 10,229 shares of the company's stock valued at $1,365,000 after acquiring an additional 5,626 shares during the last quarter. Twin Tree Management LP bought a new stake in Root in the first quarter valued at approximately $37,000. Finally, Driehaus Capital Management LLC acquired a new stake in Root during the 1st quarter valued at approximately $20,423,000. Institutional investors own 59.82% of the company's stock.

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.