Root (NASDAQ:ROOT) Trading 9.4% Higher - Should You Buy?

Root, Inc. (NASDAQ:ROOT - Get Free Report) traded up 9.4% on Friday . The company traded as high as $152.35 and last traded at $152.27. 558,741 shares were traded during mid-day trading, an increase of 8% from the average session volume of 515,512 shares. The stock had previously closed at $139.17.

Analysts Set New Price Targets

Several research analysts have commented on the company. Scotiabank reaffirmed a "sector perform" rating on shares of Root in a report on Sunday, March 2nd. Wall Street Zen raised shares of Root from a "hold" rating to a "buy" rating in a research note on Thursday, May 22nd. Jefferies Financial Group lifted their price target on shares of Root from $115.00 to $150.00 and gave the company a "buy" rating in a research report on Friday, April 11th. UBS Group upped their target price on shares of Root from $67.00 to $130.00 and gave the stock a "neutral" rating in a report on Friday, March 7th. Finally, Keefe, Bruyette & Woods raised their price target on shares of Root from $150.00 to $170.00 and gave the company an "outperform" rating in a research report on Thursday, May 8th. Five investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $136.40.

Root Price Performance

The company has a market capitalization of $2.34 billion, a P/E ratio of -123.90 and a beta of 2.31. The business's 50-day moving average is $133.07 and its two-hundred day moving average is $114.44. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65.

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

Insider Buying and Selling

In other news, CEO Alexander E. Timm sold 1,144 shares of Root stock in a transaction 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 position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Doug Ulman sold 2,000 shares of the 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 owns 6,201 shares of the company's stock, valued at approximately $1,085,175. The trade was a 24.39% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 247,205 shares of company stock worth $33,517,827. 11.76% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. lifted its stake in Root by 66.3% in the first quarter. T. Rowe Price Investment Management Inc. now owns 679,696 shares of the company's stock valued at $90,699,000 after purchasing an additional 271,097 shares during 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 buying an additional 2,627 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Root by 41.8% during the 4th 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 last quarter. Invesco Ltd. grew its stake in shares of Root by 5,575.0% during the 1st quarter. Invesco Ltd. now owns 256,792 shares of the company's stock worth $34,266,000 after acquiring an additional 252,267 shares during the period. Finally, American Century Companies Inc. purchased a new stake in Root in the 1st quarter worth about $30,786,000. 59.82% of the stock is owned by 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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