Root (NASDAQ:ROOT) Stock Price Down 12.2% – Here’s Why

Root, Inc. (NASDAQ:ROOT) dropped 12.2% during trading on Friday . The stock traded as low as $71.10 and last traded at $71.1530. Approximately 545,445 shares changed hands during mid-day trading, a decline of 0% from the average daily volume of 546,938 shares. The stock had previously closed at $81.01.

Analyst Ratings Changes

ROOT has been the topic of several recent research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a research note on Wednesday, October 8th. Zacks Research downgraded shares of Root from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 7th. Wall Street Zen cut shares of Root from a “buy” rating to a “hold” rating in a research note on Saturday, August 2nd. Wells Fargo & Company raised their target price on shares of Root from $89.00 to $96.00 and gave the stock an “equal weight” rating in a research note on Thursday. Finally, Jefferies Financial Group lowered their target price on Root from $172.00 to $138.00 and set a “buy” rating on the stock in a report on Monday, August 11th. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $125.80.

Root Trading Down 11.0%

The company has a market cap of $1.11 billion, a PE ratio of 21.79 and a beta of 2.21. The company’s 50 day simple moving average is $87.78 and its two-hundred day simple moving average is $112.43. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.26 and a quick ratio of 1.26.

Root (NASDAQ:ROOT) last issued its quarterly earnings data on Wednesday, November 5th. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.43) by $0.08. The firm had revenue of $387.80 million for the quarter, compared to analyst estimates of $363.06 million. Root had a net margin of 3.80% and a return on equity of 24.38%. The business’s revenue for the quarter was up 26.9% compared to the same quarter last year. During the same period in the prior year, the business posted $1.35 EPS. As a group, sell-side analysts anticipate that Root, Inc. will post -0.08 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Alexander E. Timm sold 10,861 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $88.88, for a total transaction of $965,325.68. Following the transaction, the chief executive officer owned 157,748 shares of the company’s stock, valued at approximately $14,020,642.24. This represents a 6.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the firm’s stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total value of $516,005.00. Following the transaction, the insider owned 274,226 shares of the company’s stock, valued at $24,609,041.24. This trade represents a 2.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 11.76% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Twin Tree Management LP purchased a new stake in Root during the 1st quarter worth approximately $37,000. State of Alaska Department of Revenue acquired a new position in shares of Root in the third quarter worth $50,000. Russell Investments Group Ltd. grew its stake in shares of Root by 511.7% in the second quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock worth $94,000 after acquiring an additional 614 shares in the last quarter. Ameritas Investment Partners Inc. increased its position in shares of Root by 28.5% during the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock worth $139,000 after acquiring an additional 241 shares during the period. Finally, Tower Research Capital LLC TRC raised its stake in shares of Root by 237.2% in the second quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock valued at $164,000 after acquiring an additional 899 shares in the last quarter. Hedge funds and other institutional investors own 59.82% of the company’s stock.

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.