Root (NASDAQ:ROOT) Trading Down 8.7% on Insider Selling

Root, Inc. (NASDAQ:ROOT)’s stock price traded down 8.7% on Tuesday after an insider sold shares in the company. The company traded as low as $73.47 and last traded at $74.20. 342,556 shares were traded during mid-day trading, a decline of 38% from the average session volume of 549,470 shares. The stock had previously closed at $81.30.

Specifically, major shareholder Meyer Malka sold 118,107 shares of the firm’s stock in a transaction on Monday, November 11th. The shares were sold at an average price of $82.71, for a total transaction of $9,768,629.97. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, major shareholder Meyer Malka sold 75,839 shares of the stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the transaction, the insider now owns 43,107 shares of the company’s stock, valued at approximately $3,500,719.47. This trade represents a 63.76 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Cantor Fitzgerald raised Root to a “strong-buy” rating in a research report on Thursday, October 3rd. UBS Group upped their price target on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research report on Monday, November 4th. Keefe, Bruyette & Woods reiterated an “outperform” rating and issued a $90.00 price objective (up from $82.00) on shares of Root in a report on Tuesday, November 5th. Wells Fargo & Company increased their target price on shares of Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a report on Friday, November 1st. Finally, Jefferies Financial Group cut their price target on shares of Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research report on Wednesday, October 9th. Four research analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $59.13.

Root Price Performance

The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The firm has a market capitalization of $1.19 billion, a price-to-earnings ratio of -61.42 and a beta of 2.34. The company’s 50 day moving average is $46.50 and its 200-day moving average is $52.31.

Root (NASDAQ:ROOT) last released its quarterly earnings data on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 company had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $272.77 million. During the same period last year, the firm posted ($3.16) earnings per share. The business’s revenue was up 165.1% on a year-over-year basis. Equities research analysts anticipate that Root, Inc. will post -1.2 earnings per share for the current year.

Hedge Funds Weigh In On Root

Large investors have recently modified their holdings of the stock. Hood River Capital Management LLC acquired a new position in Root in the 2nd quarter valued at about $9,547,000. Driehaus Capital Management LLC bought a new position in shares of Root during the second quarter worth approximately $9,154,000. Tidal Investments LLC acquired a new stake in Root during the 1st quarter worth approximately $1,997,000. Bank of New York Mellon Corp bought a new stake in Root in the 2nd quarter valued at $1,280,000. Finally, FMR LLC grew its holdings in Root by 966.2% in the 3rd quarter. FMR LLC now owns 18,040 shares of the company’s stock valued at $682,000 after buying an additional 16,348 shares in the last quarter. 59.82% of the stock is owned by institutional investors.

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.