Root (NASDAQ:ROOT) Shares Up 4.9% – Here’s Why

Shares of Root, Inc. (NASDAQ:ROOT) shot up 4.9% on Friday . The company traded as high as $83.39 and last traded at $82.68. 173,486 shares changed hands during mid-day trading, a decline of 68% from the average session volume of 548,334 shares. The stock had previously closed at $78.81.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. Jefferies Financial Group cut 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 target on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research note on Monday, November 4th. JMP Securities reiterated a “market outperform” rating and issued a $90.00 target price on shares of Root in a report on Tuesday, October 15th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $90.00 price target (up from $82.00) on shares of Root in a research report on Tuesday, November 5th. Finally, Wells Fargo & Company boosted their price objective on Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a research report on Friday, November 1st. Four analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Root has an average rating of “Moderate Buy” and a consensus target price of $59.13.

Root Stock Up 11.6 %

The company has a market cap of $1.33 billion, a P/E ratio of -69.35 and a beta of 2.34. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65. The company has a fifty day moving average of $47.27 and a 200 day moving average of $52.50.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, beating analysts’ consensus estimates of ($0.61) by $1.96. The business had revenue of $305.70 million during the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same period in the prior year, the company earned ($3.16) earnings per share. On average, research analysts anticipate that Root, Inc. will post -1.2 earnings per share for the current fiscal year.

Insider Buying and Selling at Root

In related news, major shareholder Meyer Malka sold 75,839 shares of the stock in a transaction dated Thursday, November 7th. The shares were sold at an average price of $81.21, for a total value of $6,158,885.19. Following the sale, the insider now directly owns 43,107 shares of the company’s stock, valued at $3,500,719.47. This represents a 63.76 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In the last ninety days, insiders have sold 244,905 shares of company stock worth $20,247,819. Insiders own 11.71% of the company’s stock.

Hedge Funds Weigh In On Root

A number of hedge funds and other institutional investors have recently made changes to their positions in ROOT. MetLife Investment Management LLC increased its holdings in shares of Root by 129.1% in the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after acquiring an additional 2,889 shares during the period. Versor Investments LP acquired a new position in shares of Root in the third quarter valued at about $216,000. Algert Global LLC acquired a new position in Root in the 2nd quarter worth approximately $288,000. Vanguard Personalized Indexing Management LLC increased its holdings in Root by 76.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after acquiring an additional 2,576 shares in the last quarter. Finally, Verition Fund Management LLC lifted its holdings in Root by 15.2% during the third quarter. Verition Fund Management LLC now owns 9,788 shares of the company’s stock valued at $370,000 after purchasing an additional 1,288 shares in the last quarter. Institutional investors own 59.82% of the company’s stock.

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.