Root (NASDAQ:ROOT) Stock Price Down 10.5% – Here’s What Happened

Root, Inc. (NASDAQ:ROOT)’s stock price was down 10.5% during mid-day trading on Wednesday . The company traded as low as $89.47 and last traded at $91.14. Approximately 151,991 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 551,239 shares. The stock had previously closed at $101.86.

Wall Street Analyst Weigh In

ROOT has been the subject of several recent analyst reports. Wells Fargo & Company raised their target price on Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a research note on Friday, November 1st. Jefferies Financial Group lowered their price objective on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a research note on Wednesday, October 9th. JMP Securities lowered shares of Root from an “outperform” rating to a “market perform” rating in a research note on Friday, November 22nd. Citizens Jmp downgraded shares of Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. Finally, Keefe, Bruyette & Woods restated an “outperform” rating and issued a $90.00 target price (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Six research 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’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $59.13.

Root Price Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The business has a 50 day simple moving average of $56.30 and a 200-day simple moving average of $54.26. The firm has a market cap of $1.46 billion, a price-to-earnings ratio of -74.10 and a beta of 2.34.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.61) by $1.96. The company had revenue of $305.70 million for the quarter, compared to analysts’ expectations of $272.77 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. Root’s quarterly revenue was up 165.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($3.16) earnings per share. Equities research analysts expect that Root, Inc. will post -1.2 earnings per share for the current year.

Insider Transactions at Root

In other Root news, major shareholder Meyer Malka sold 75,839 shares of the company’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the transaction, the insider now owns 43,107 shares in the company, valued at $3,500,719.47. This represents a 63.76 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Julie Szudarek sold 2,000 shares of the business’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $96.33, for a total transaction of $192,660.00. Following the completion of the transaction, the director now directly owns 15,003 shares in the company, valued at $1,445,238.99. This trade represents a 11.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 246,905 shares of company stock worth $20,440,479 in the last quarter. 11.71% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Versor Investments LP purchased a new position in Root in the third quarter valued at approximately $216,000. Tidal Investments LLC bought a new stake in shares of Root in the first quarter valued at $1,997,000. Driehaus Capital Management LLC purchased a new position in shares of Root during the 2nd quarter valued at $9,154,000. Bank of New York Mellon Corp bought a new position in shares of Root during the 2nd quarter worth $1,280,000. Finally, Hood River Capital Management LLC purchased a new stake in Root in the 2nd quarter worth about $9,547,000. 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.