Root, Inc. (NASDAQ:ROOT) Short Interest Up 33.9% in December

Root, Inc. (NASDAQ:ROOT) saw a significant increase in short interest during the month of December. As of December 31st, there was short interest totalling 1,580,000 shares, an increase of 33.9% from the December 15th total of 1,180,000 shares. Based on an average daily trading volume, of 681,700 shares, the short-interest ratio is currently 2.3 days.

Root Trading Down 3.4 %

Shares of NASDAQ:ROOT traded down $3.02 on Friday, hitting $85.31. 273,252 shares of the company’s stock were exchanged, compared to its average volume of 367,341. The stock has a market capitalization of $1.29 billion, a price-to-earnings ratio of -69.36 and a beta of 2.55. Root has a 12 month low of $7.22 and a 12 month high of $118.15. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39. The business’s 50 day simple moving average is $84.54 and its two-hundred day simple moving average is $62.11.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate of ($0.61) by $1.96. The company 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 firm’s revenue was up 165.1% compared to the same quarter last year. During the same quarter last year, the firm posted ($3.16) EPS. Analysts anticipate that Root will post -1.2 EPS for the current fiscal year.

Insider Activity at Root

In related news, major shareholder Meyer Malka sold 50,959 shares of the firm’s stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $84.78, for a total value of $4,320,304.02. Following the completion of the transaction, the insider now directly owns 102 shares of the company’s stock, valued at approximately $8,647.56. This trade represents a 99.80 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Julie Szudarek sold 2,000 shares of the company’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $96.33, for a total transaction of $192,660.00. Following the sale, the director now directly 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 disclosure for this sale can be found here. Over the last three months, insiders sold 246,905 shares of company stock valued at $20,440,479. Insiders own 11.71% of the company’s stock.

Institutional Trading of Root

Institutional investors and hedge funds have recently modified their holdings of the stock. FMR LLC grew its stake in Root by 966.2% in the third quarter. FMR LLC now owns 18,040 shares of the company’s stock worth $682,000 after purchasing an additional 16,348 shares in the last quarter. 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 buying an additional 10,993 shares during the period. Versor Investments LP bought a new position in shares of Root during the 3rd quarter worth $216,000. Nordea Investment Management AB increased its stake in shares of Root by 7.3% during the fourth 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 during the period. Finally, Point72 Asset Management L.P. bought a new stake in shares of Root in the third quarter valued at about $428,000. Institutional investors own 59.82% of the company’s stock.

Wall Street Analysts Forecast Growth

ROOT has been the subject of several recent research reports. JMP Securities lowered Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a report on Thursday, October 3rd. Jefferies Financial Group decreased their price target on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. UBS Group lifted their price objective on shares of Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. Finally, Keefe, Bruyette & Woods restated an “outperform” rating and issued a $90.00 target price (up previously from $82.00) on shares of Root in a report on Tuesday, November 5th. Six investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $59.38.

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.