Root (NASDAQ:ROOT) Shares Gap Down – Here’s What Happened

Root, Inc. (NASDAQ:ROOT) gapped down before the market opened on Thursday . The stock had previously closed at $72.77, but opened at $71.30. Root shares last traded at $74.59, with a volume of 62,317 shares traded.

Wall Street Analysts Forecast Growth

ROOT has been the topic of several recent analyst reports. Wells Fargo & Company lifted their price objective on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a report on Friday, November 1st. Cantor Fitzgerald upgraded shares of Root to a “strong-buy” rating in a report on Thursday, October 3rd. Jefferies Financial Group lowered their price objective on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. UBS Group upped their target price 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 reissued an “outperform” rating and issued a $90.00 price target (up previously from $82.00) on shares of Root in a research note on Tuesday, November 5th. Six equities research analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $59.13.

Root Stock Down 4.0 %

The firm’s 50-day simple moving average is $77.60 and its 200 day simple moving average is $58.94. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The stock has a market capitalization of $1.10 billion, a P/E ratio of -59.35 and a beta of 2.47.

Root (NASDAQ:ROOT) last released its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.61) by $1.96. The business had revenue of $305.70 million for the quarter, compared to analyst estimates of $272.77 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. Root’s revenue was up 165.1% on a year-over-year basis. During the same quarter in the prior year, the company posted ($3.16) earnings per share. As a group, research analysts expect that Root, Inc. will post -1.2 EPS for the current year.

Insider Activity

In other news, major shareholder Meyer Malka sold 118,107 shares of the company’s stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $82.71, for a total value of $9,768,629.97. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Julie Szudarek sold 2,000 shares of the firm’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $96.33, for a total transaction of $192,660.00. Following the completion of the sale, the director now owns 15,003 shares of the company’s stock, valued at $1,445,238.99. This trade represents a 11.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 246,905 shares of company stock valued at $20,440,479. 11.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Point72 DIFC Ltd acquired a new stake in Root during the 3rd quarter valued at $33,000. MetLife Investment Management LLC raised its position in shares of Root by 129.1% in the third quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after purchasing an additional 2,889 shares during the period. Versor Investments LP acquired a new stake in shares of Root during the 3rd quarter worth about $216,000. Franklin Resources Inc. bought a new stake in shares of Root during the 3rd quarter worth about $249,000. Finally, Algert Global LLC acquired a new position in Root in the 2nd quarter valued at about $288,000. 59.82% of the stock is currently owned by institutional investors.

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.