Root (NASDAQ:ROOT) Trading Down 10.1% – Time to Sell?

Root, Inc. (NASDAQ:ROOT)’s share price dropped 10.1% during mid-day trading on Monday . The company traded as low as $116.45 and last traded at $116.70. Approximately 167,966 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 519,290 shares. The stock had previously closed at $129.74.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Wells Fargo & Company boosted their price objective on shares of Root from $97.00 to $105.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 10th. Scotiabank reissued a “sector perform” rating on shares of Root in a research report on Sunday, March 2nd. Jefferies Financial Group upped their target price on Root from $115.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, April 11th. Finally, UBS Group raised their price target on Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, March 7th. Six investment 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. Based on data from MarketBeat.com, Root presently has a consensus rating of “Hold” and a consensus target price of $102.67.

Root Stock Performance

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 stock has a market capitalization of $1.77 billion, a PE ratio of -94.66 and a beta of 2.41. The firm has a 50 day moving average price of $130.45 and a 200-day moving average price of $95.58.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, February 26th. The company reported $1.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.63) by $1.93. The company had revenue of $326.70 million during the quarter, compared to analyst estimates of $287.79 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. Research analysts expect 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 1,144 shares of Root stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $134.01, for a total transaction of $153,307.44. Following the completion of the transaction, the chief executive officer now directly owns 161,625 shares in the company, valued at approximately $21,659,366.25. This trade represents a 0.70 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Doug Ulman sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $175.00, for a total value of $350,000.00. Following the completion of the sale, the director now owns 6,201 shares in the company, valued at approximately $1,085,175. This represents a 24.39 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 8,659 shares of company stock valued at $1,191,469. Company insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Russell Investments Group Ltd. increased its stake in shares of Root by 651.8% in the 4th quarter. Russell Investments Group Ltd. now owns 421 shares of the company’s stock valued at $31,000 after purchasing an additional 365 shares in the last quarter. KLP Kapitalforvaltning AS purchased a new stake in shares of Root in the fourth quarter valued at approximately $94,000. Aquatic Capital Management LLC raised its stake in shares of Root by 92.1% during the 4th quarter. Aquatic Capital Management LLC now owns 1,537 shares of the company’s stock worth $112,000 after buying an additional 737 shares during the period. SBI Securities Co. Ltd. purchased a new position in shares of Root during the 4th quarter valued at approximately $154,000. Finally, FreeGulliver LLC acquired a new stake in Root in the 4th quarter valued at $203,000. 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.