Root (NASDAQ:ROOT) Sees Unusually-High Trading Volume on Strong Earnings

Root, Inc. (NASDAQ:ROOT) shares saw unusually-strong trading volume on Thursday following a better than expected earnings announcement. Approximately 600,383 shares changed hands during trading, an increase of 18% from the previous session’s volume of 508,929 shares.The stock last traded at $138.35 and had previously closed at $139.93.

The company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.62. The company had revenue of $349.40 million for the quarter, compared to analyst estimates of $305.24 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The firm’s revenue was up 37.2% on a year-over-year basis. During the same period in the previous year, the company posted ($0.42) earnings per share.

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Jefferies Financial Group upped their target price on shares of Root from $115.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, April 11th. Scotiabank restated a “sector perform” rating on shares of Root in a research report on Sunday, March 2nd. UBS Group raised 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. Wells Fargo & Company boosted their target price on shares of Root from $105.00 to $142.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, Keefe, Bruyette & Woods lifted their price objective on Root from $150.00 to $170.00 and gave the stock an “outperform” rating in a report on Thursday. 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. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $122.17.

Insider Transactions at Root

In other Root news, CEO Alexander E. Timm sold 1,144 shares of the company’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. This represents a 0.70 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Doug Ulman sold 2,000 shares of the stock in a transaction on Monday, March 24th. The shares were sold at an average price of $175.00, for a total transaction of $350,000.00. Following the completion of the sale, the director now directly owns 6,201 shares in the company, valued at approximately $1,085,175. This represents a 24.39 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 233,659 shares of company stock valued at $31,748,719. 11.71% of the stock is currently owned by corporate insiders.

Institutional Trading of Root

A number of large investors have recently made changes to their positions in the stock. Nordea Investment Management AB increased its holdings in Root by 7.3% during the fourth quarter. Nordea Investment Management AB now owns 20,697 shares of the company’s stock valued at $1,497,000 after buying an additional 1,416 shares during the period. Rhumbline Advisers lifted its stake in shares of Root by 27.7% during the 4th quarter. Rhumbline Advisers now owns 14,628 shares of the company’s stock worth $1,062,000 after purchasing an additional 3,169 shares during the last quarter. Mariner LLC bought a new stake in Root during the fourth quarter valued at about $217,000. Bank of New York Mellon Corp grew its stake in Root by 36.0% in the fourth quarter. Bank of New York Mellon Corp now owns 24,438 shares of the company’s stock valued at $1,774,000 after purchasing an additional 6,465 shares during the last quarter. Finally, Swiss National Bank raised its holdings in Root by 15.6% in the fourth quarter. Swiss National Bank now owns 15,600 shares of the company’s stock worth $1,132,000 after purchasing an additional 2,100 shares in the last quarter. 59.82% of the stock is owned by hedge funds and other institutional investors.

Root Trading Up 4.2 %

The firm has a market capitalization of $2.24 billion, a PE ratio of -119.85 and a beta of 2.40. 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’s 50-day simple moving average is $137.35 and its 200 day simple moving average is $105.32.

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.