Root (NASDAQ:ROOT) Stock Price Down 6.1% – Should You Sell?

Root, Inc. (NASDAQ:ROOT)’s share price was down 6.1% during mid-day trading on Monday . The stock traded as low as $90.00 and last traded at $91.68. Approximately 223,344 shares were traded during trading, a decline of 59% from the average daily volume of 547,199 shares. The stock had previously closed at $97.68.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ROOT shares. Citizens Jmp lowered shares of Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. Jefferies Financial Group cut their target price on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. Keefe, Bruyette & Woods restated an “outperform” rating and set a $90.00 price target (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. JMP Securities cut Root from an “outperform” rating to a “market perform” rating in a report on Friday, November 22nd. Finally, Wells Fargo & Company increased their price objective on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a research report on Friday, November 1st. Six research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $59.13.

Root Stock Down 1.3 %

The stock has a market capitalization of $1.23 billion, a P/E ratio of -67.14 and a beta of 2.47. The stock has a 50 day moving average price of $68.74 and a 200-day moving average price of $56.90. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39.

Root (NASDAQ:ROOT) last issued its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share for the quarter, beating the consensus estimate of ($0.61) by $1.96. The company had revenue of $305.70 million during 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% compared to the same quarter last year. During the same period in the prior year, the business posted ($3.16) EPS. As a group, research analysts expect that Root, Inc. will post -1.2 EPS for the current fiscal year.

Insider Transactions at Root

In related news, major shareholder Meyer Malka sold 75,839 shares of the firm’s stock in a transaction dated 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 sale, the insider now directly owns 43,107 shares of the company’s stock, valued at $3,500,719.47. This trade represents a 63.76 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Julie Szudarek sold 2,000 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $96.33, for a total value of $192,660.00. Following the transaction, the director now owns 15,003 shares in the company, valued at approximately $1,445,238.99. This represents a 11.76 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 246,905 shares of company stock worth $20,440,479. Insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Point72 DIFC Ltd purchased a new stake in shares of Root in the 3rd quarter worth about $33,000. MetLife Investment Management LLC increased its stake in shares of Root by 129.1% during the third quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after purchasing an additional 2,889 shares in the last quarter. Versor Investments LP purchased a new position in shares of Root during the third quarter valued at approximately $216,000. Franklin Resources Inc. bought a new stake in shares of Root in the 3rd quarter worth approximately $249,000. Finally, Algert Global LLC purchased a new stake in shares of Root in the 2nd quarter worth approximately $288,000. Hedge funds and other institutional investors own 59.82% of the company’s stock.

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.