Root (NASDAQ:ROOT) Shares Gap Down – What’s Next?

Root, Inc. (NASDAQ:ROOT) shares gapped down prior to trading on Friday . The stock had previously closed at $109.40, but opened at $103.17. Root shares last traded at $104.58, with a volume of 110,775 shares changing hands.

Analyst Upgrades and Downgrades

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

Root Stock Down 0.2 %

The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The business’s fifty day moving average price is $54.94 and its 200 day moving average price is $54.05. The company has a market capitalization of $1.65 billion, a P/E ratio of -88.80 and a beta of 2.34.

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

Insider Buying and Selling

In related news, Director Julie Szudarek sold 2,000 shares of Root stock in a transaction dated Monday, November 18th. The shares were 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 of the company’s stock, valued at $1,445,238.99. This trade represents a 11.76 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, major shareholder Meyer Malka sold 50,959 shares of the business’s stock in a transaction dated Thursday, October 31st. The shares were sold at an average price of $84.78, for a total transaction of $4,320,304.02. Following the completion of the transaction, the insider now owns 102 shares in the company, valued at approximately $8,647.56. This trade represents a 99.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 246,905 shares of company stock worth $20,440,479 in the last 90 days. 11.71% of the stock is owned by company insiders.

Institutional Investors Weigh In On Root

A number of hedge funds and other institutional investors have recently bought and sold shares of ROOT. Hood River Capital Management LLC acquired a new position in Root in the second quarter worth $9,547,000. Driehaus Capital Management LLC bought a new position in shares of Root in the second quarter valued at about $9,154,000. State Street Corp lifted its position in Root by 0.3% during the 3rd quarter. State Street Corp now owns 176,891 shares of the company’s stock worth $6,683,000 after buying an additional 444 shares in the last quarter. Tidal Investments LLC acquired a new position in Root during the 1st quarter worth about $1,997,000. Finally, Bank of New York Mellon Corp bought a new stake in Root during the 2nd quarter worth about $1,280,000. 59.82% of the stock is owned by institutional investors and hedge funds.

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.