Root (NASDAQ:ROOT) Trading 13.1% Higher – Time to Buy?

Shares of Root, Inc. (NASDAQ:ROOT) shot up 13.1% during mid-day trading on Wednesday . The company traded as high as $88.80 and last traded at $89.5750. 624,161 shares were traded during mid-day trading, an increase of 16% from the average session volume of 538,745 shares. The stock had previously closed at $79.18.

Analyst Ratings Changes

ROOT has been the subject of several analyst reports. Keefe, Bruyette & Woods lowered their price target on shares of Root from $170.00 to $165.00 and set an “outperform” rating for the company in a report on Friday, August 8th. Wells Fargo & Company cut their price target on Root from $120.00 to $89.00 and set an “equal weight” rating for the company in a research note on Wednesday, October 8th. Wall Street Zen downgraded shares of Root from a “buy” rating to a “hold” rating in a report on Saturday, August 2nd. Jefferies Financial Group lowered their target price on Root from $172.00 to $138.00 and set a “buy” rating on the stock in a report on Monday, August 11th. Finally, Zacks Research cut Root from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 7th. Two analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $124.40.

Root Price Performance

The company has a debt-to-equity ratio of 0.82, a current ratio of 1.26 and a quick ratio of 1.26. The stock’s 50 day simple moving average is $87.96 and its 200-day simple moving average is $112.82. The stock has a market capitalization of $1.37 billion, a price-to-earnings ratio of 17.82 and a beta of 2.21.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, August 6th. The company reported $1.29 EPS for the quarter, topping the consensus estimate of $1.06 by $0.23. The business had revenue of $382.90 million during the quarter, compared to the consensus estimate of $348.36 million. Root had a return on equity of 38.24% and a net margin of 6.02%.Root’s revenue was up 32.4% on a year-over-year basis. During the same quarter last year, the company earned ($0.52) EPS. On average, analysts expect that Root, Inc. will post -0.08 EPS for the current fiscal year.

Insider Buying and Selling at Root

In other Root news, CEO Alexander E. Timm sold 10,861 shares of the stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total value of $965,325.68. Following the sale, the chief executive officer directly owned 157,748 shares in the company, valued at approximately $14,020,642.24. This trade represents a 6.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of Root stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $89.74, for a total transaction of $516,005.00. Following the transaction, the insider directly owned 274,226 shares in the company, valued at approximately $24,609,041.24. This represents a 2.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 11.71% of the company’s stock.

Hedge Funds Weigh In On Root

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State of Wyoming boosted its position in Root by 41.9% during the third quarter. State of Wyoming now owns 2,359 shares of the company’s stock valued at $211,000 after purchasing an additional 696 shares during the last quarter. Principal Financial Group Inc. grew its holdings in shares of Root by 21.2% during the 3rd quarter. Principal Financial Group Inc. now owns 43,579 shares of the company’s stock valued at $3,901,000 after purchasing an additional 7,623 shares during the last quarter. Arizona State Retirement System boosted its holdings in shares of Root by 22.8% during the 3rd quarter. Arizona State Retirement System now owns 3,189 shares of the company’s stock valued at $285,000 after acquiring an additional 593 shares in the last quarter. IFC Advisors LLC raised its holdings in Root by 52.0% in the 3rd quarter. IFC Advisors LLC now owns 45,034 shares of the company’s stock valued at $4,031,000 after buying an additional 15,407 shares during the last quarter. Finally, New York State Common Retirement Fund boosted its position in Root by 950.0% during the 3rd quarter. New York State Common Retirement Fund now owns 36,750 shares of the company’s stock worth $3,289,000 after buying an additional 33,250 shares during the period. 59.82% of the stock is owned by institutional investors and hedge funds.

About Root

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.