Root (NASDAQ:ROOT) Stock Price Down 7.3% – Time to Sell?

Root, Inc. (NASDAQ:ROOT) was down 7.3% during trading on Tuesday . The company traded as low as $80.56 and last traded at $79.11. Approximately 57,770 shares traded hands during trading, a decline of 83% from the average daily volume of 338,076 shares. The stock had previously closed at $85.31.

Wall Street Analyst Weigh In

ROOT has been the subject of several research reports. Wells Fargo & Company increased their price target on shares of Root from $78.00 to $80.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 14th. JMP Securities downgraded shares of Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $90.00 price target (up previously from $82.00) on shares of Root in a report on Tuesday, November 5th. Citizens Jmp lowered Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. Finally, UBS Group raised their target price on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research report on Monday, November 4th. Six research analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $59.38.

Root Stock Performance

The business has a 50 day moving average of $84.69 and a 200-day moving average of $62.68. 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 company has a market capitalization of $1.22 billion, a P/E ratio of -65.77 and a beta of 2.55.

Root (NASDAQ:ROOT) last announced its quarterly earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.61) by $1.96. The firm had revenue of $305.70 million for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the prior year, the firm posted ($3.16) earnings per share. On average, sell-side analysts predict that Root, Inc. will post -1.2 EPS for the current fiscal year.

Insider Buying and Selling at Root

In other Root news, Director Julie Szudarek sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $96.33, for a total value of $192,660.00. Following the completion of the transaction, the director now owns 15,003 shares of the company’s stock, valued at $1,445,238.99. The trade was a 11.76 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Meyer Malka sold 50,959 shares of the stock in a transaction on Thursday, October 31st. The stock was 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 directly owns 102 shares in the company, valued at $8,647.56. The trade was a 99.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 246,905 shares of company stock valued at $20,440,479 in the last three months. Company insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROOT. Wesbanco Bank Inc. bought a new stake in Root during the fourth quarter worth about $218,000. Nordea Investment Management AB raised its holdings in shares of Root by 7.3% during the 4th 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 in the last quarter. Franklin Resources Inc. purchased a new position in shares of Root during the 3rd quarter valued at about $249,000. Barclays PLC lifted its holdings in shares of Root by 361.6% in the 3rd quarter. Barclays PLC now owns 14,033 shares of the company’s stock worth $529,000 after acquiring an additional 10,993 shares during the last quarter. Finally, MML Investors Services LLC purchased a new stake in shares of Root in the 3rd quarter valued at $288,000. 59.82% of the stock is currently owned by hedge funds and other 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.