Root (NASDAQ:ROOT) Shares Down 8.7% – Here’s What Happened

Shares of Root, Inc. (NASDAQ:ROOT) were down 8.7% during trading on Tuesday . The company traded as low as $73.47 and last traded at $74.20. Approximately 342,556 shares traded hands during trading, a decline of 38% from the average daily volume of 549,470 shares. The stock had previously closed at $81.30.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ROOT. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $90.00 target price (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. JMP Securities reaffirmed a “market outperform” rating and set a $90.00 price objective on shares of Root in a research report on Tuesday, October 15th. UBS Group lifted their price target on shares of Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research report on Monday, November 4th. Jefferies Financial Group lowered their target price on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research note on Wednesday, October 9th. Finally, Wells Fargo & Company lifted their price objective on Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a report on Friday, November 1st. Four equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Root has an average rating of “Moderate Buy” and a consensus price target of $59.13.

Root Stock Performance

The business has a fifty day simple moving average of $45.10 and a two-hundred day simple moving average of $52.08. 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 has a market cap of $1.13 billion, a P/E ratio of -59.24 and a beta of 2.34.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate 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 firm had revenue of $305.70 million for the quarter, compared to the consensus estimate of $272.77 million. During the same quarter last year, the company earned ($3.16) earnings per share. The business’s revenue for the quarter was up 165.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Root, Inc. will post -1.2 EPS for the current year.

Insider Buying and Selling

In other news, major shareholder Meyer Malka sold 50,959 shares of Root stock in a transaction on Thursday, October 31st. The stock was sold at an average price of $84.78, for a total value of $4,320,304.02. Following the transaction, the insider now directly owns 102 shares in the company, valued at approximately $8,647.56. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 11.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Root

Large investors have recently bought and sold shares of the business. Algert Global LLC purchased a new stake in shares of Root in the second quarter valued at approximately $288,000. Versor Investments LP acquired a new position in Root during the third quarter worth $216,000. Vanguard Personalized Indexing Management LLC raised its stake in shares of Root by 76.8% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock valued at $306,000 after acquiring an additional 2,576 shares in the last quarter. Quantbot Technologies LP acquired a new stake in Root in the first quarter valued at $431,000. Finally, Price T Rowe Associates Inc. MD acquired a new stake in Root in the first quarter valued at $434,000. Institutional investors and hedge funds 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.