Root (NASDAQ:ROOT) Shares Down 7.4% – Here’s Why

Root, Inc. (NASDAQ:ROOT) fell 7.4% during mid-day trading on Friday . The stock traded as low as $53.92 and last traded at $53.7560. Approximately 89,115 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 298,608 shares. The stock had previously closed at $58.04.

Analyst Ratings Changes

ROOT has been the subject of several analyst reports. Keefe, Bruyette & Woods lowered their target price on Root from $104.00 to $95.00 and set an “outperform” rating for the company in a research report on Tuesday, April 7th. UBS Group set a $50.00 price target on Root and gave the company a “neutral” rating in a research note on Monday, May 11th. Weiss Ratings upgraded Root from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday. Wells Fargo & Company upped their target price on Root from $58.00 to $61.00 and gave the company an “equal weight” rating in a report on Thursday, July 9th. Finally, Zacks Research raised shares of Root from a “strong sell” rating to a “hold” rating in a research report on Monday, June 8th. Two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $86.00.

Root Stock Down 5.4%

The company has a market cap of $869.16 million, a price-to-earnings ratio of 16.40 and a beta of 2.85. The stock’s 50-day moving average is $57.04 and its 200-day moving average is $55.85. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.61.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $2.09 EPS for the quarter, topping analysts’ consensus estimates of $0.84 by $1.25. Root had a net margin of 3.58% and a return on equity of 19.97%. The business had revenue of $393.50 million during the quarter, compared to analysts’ expectations of $398.16 million. During the same period last year, the company posted $1.07 earnings per share. The business’s quarterly revenue was up 12.5% on a year-over-year basis. On average, analysts anticipate that Root, Inc. will post 3.28 earnings per share for the current fiscal year.

Institutional Trading of Root

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROOT. CoreCap Advisors LLC bought a new stake in shares of Root during the second quarter valued at approximately $42,000. Russell Investments Group Ltd. grew its position in Root by 511.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock valued at $94,000 after purchasing an additional 614 shares during the period. Advisory Services Network LLC bought a new stake in Root during the 3rd quarter valued at $144,000. Tower Research Capital LLC TRC raised its holdings in Root by 237.2% during the second quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock worth $164,000 after buying an additional 899 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in Root during the third quarter worth $194,000. 59.82% of the stock is owned by institutional investors.

About Root

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company’s core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.