Root (NASDAQ:ROOT) Shares Up 5.7% – Still a Buy?

Shares of Root, Inc. (NASDAQ:ROOT) traded up 5.7% on Wednesday . The company traded as high as $87.00 and last traded at $87.25. 121,285 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 321,143 shares. The stock had previously closed at $82.57.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Wells Fargo & Company raised their price objective on Root from $78.00 to $80.00 and gave the stock an “equal weight” rating in a research note on Tuesday, January 14th. Citizens Jmp cut Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. UBS Group raised their price objective on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research report on Monday, November 4th. JMP Securities downgraded shares of Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Finally, Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a report on Thursday, October 3rd. Six investment 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 stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $59.38.

Root Price Performance

The stock has a fifty day moving average of $84.23 and a two-hundred day moving average of $63.49. 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 stock has a market capitalization of $1.38 billion, a price-to-earnings ratio of -74.12 and a beta of 2.55.

Root (NASDAQ:ROOT) last released its earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, beating the consensus estimate 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 earned ($3.16) EPS. The business’s revenue for the quarter was up 165.1% on a year-over-year basis. As a group, equities research analysts forecast that Root, Inc. will post -1.2 earnings per share for the current year.

Insider Transactions at Root

In related news, 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 value of $192,660.00. Following the completion of the sale, the director now directly owns 15,003 shares in the company, valued at approximately $1,445,238.99. This trade represents a 11.76 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Meyer Malka sold 75,839 shares of the company’s stock in a transaction that occurred on 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 completion of the sale, the insider now owns 43,107 shares in the company, valued at $3,500,719.47. This represents a 63.76 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 246,905 shares of company stock valued at $20,440,479 over the last quarter. Corporate insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Point72 DIFC Ltd acquired a new stake in Root during the 3rd quarter worth approximately $33,000. MetLife Investment Management LLC grew its stake 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 worth $194,000 after purchasing an additional 2,889 shares during the last quarter. Versor Investments LP acquired a new stake in Root in the third quarter valued at $216,000. Wesbanco Bank Inc. bought a new position in Root during the 4th quarter worth $218,000. Finally, Franklin Resources Inc. bought a new stake in shares of Root in the 3rd quarter valued at about $249,000. 59.82% of the stock is owned by institutional investors and hedge funds.

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.