Root (NASDAQ:ROOT) Stock Price Up 5.7% – Here’s Why

Shares of Root, Inc. (NASDAQ:ROOT) shot up 5.7% on Wednesday . The company traded as high as $87.00 and last traded at $87.25. 121,285 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 321,143 shares. The stock had previously closed at $82.57.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ROOT. Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. 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 research note on Tuesday, November 5th. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a research report on Thursday, October 3rd. Jefferies Financial Group cut their target price on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. Finally, Wells Fargo & Company upped their target price on Root from $78.00 to $80.00 and gave the company an “equal weight” rating in a research report on Tuesday, January 14th. Six analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $59.38.

Root Price Performance

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 cap of $1.47 billion, a price-to-earnings ratio of -79.27 and a beta of 2.55. The business has a fifty day moving average price of $83.72 and a 200 day moving average price of $63.92.

Root (NASDAQ:ROOT) last issued its 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. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The business had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $272.77 million. During the same quarter in the prior year, the firm earned ($3.16) EPS. The business’s revenue for the quarter was up 165.1% compared to the same quarter last year. As a group, research analysts anticipate that Root, Inc. will post -0.08 earnings per share for the current year.

Insider Buying and Selling at Root

In other Root news, Director Julie Szudarek sold 2,000 shares of the company’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $96.33, for a total value of $192,660.00. Following the sale, the director now owns 15,003 shares in the company, valued at approximately $1,445,238.99. The trade was a 11.76 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Meyer Malka sold 118,107 shares of the company’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $82.71, for a total value of $9,768,629.97. The disclosure for this sale can be found here. In the last quarter, insiders have sold 195,946 shares of company stock worth $16,120,175. Insiders own 11.71% of the company’s stock.

Institutional Investors Weigh In On Root

Several institutional investors and hedge funds have recently made changes to their positions in ROOT. Point72 DIFC Ltd bought a new stake in shares of Root during the 3rd quarter valued at about $33,000. MetLife Investment Management LLC boosted its position in shares of Root by 129.1% during the 3rd 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 bought a new stake in shares of Root during the 3rd quarter valued at about $216,000. Wesbanco Bank Inc. bought a new stake in shares of Root during the 4th quarter valued at about $218,000. Finally, Franklin Resources Inc. bought a new stake in shares of Root during the 3rd quarter valued at about $249,000. 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.