Root, Inc. (NASDAQ:ROOT) Major Shareholder Sells $805,714.00 in Stock

Root, Inc. (NASDAQ:ROOT) major shareholder Meyer Malka sold 13,300 shares of the business’s stock in a transaction dated Thursday, May 2nd. The shares were sold at an average price of $60.58, for a total value of $805,714.00. Following the completion of the transaction, the insider now directly owns 43,107 shares of the company’s stock, valued at $2,611,422.06. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Major shareholders that own 10% or more of a company’s stock are required to disclose their transactions with the SEC.

Root Price Performance

Shares of Root stock traded up $0.33 during trading on Monday, hitting $56.62. The stock had a trading volume of 474,694 shares, compared to its average volume of 669,090. The firm has a market cap of $826.65 million, a price-to-earnings ratio of -7.35 and a beta of 2.72. Root, Inc. has a 12 month low of $4.29 and a 12 month high of $86.57. The business’s 50-day moving average is $55.31 and its 200 day moving average is $25.78. The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 1.81.

Root (NASDAQ:ROOT) last released its quarterly earnings results on Tuesday, April 30th. The company reported ($0.42) earnings per share for the quarter, topping the consensus estimate of ($2.51) by $2.09. The firm had revenue of $254.90 million for the quarter, compared to analysts’ expectations of $203.99 million. Root had a negative net margin of 17.61% and a negative return on equity of 62.36%. The business’s quarterly revenue was up 263.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($2.88) earnings per share. As a group, sell-side analysts anticipate that Root, Inc. will post -6.59 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts recently issued reports on ROOT shares. Citigroup upped their target price on Root from $11.00 to $12.00 and gave the stock a “neutral” rating in a report on Friday, February 23rd. Jefferies Financial Group raised Root from a “hold” rating to a “buy” rating and increased their price target for the stock from $10.00 to $40.00 in a research report on Friday, March 1st. TD Cowen started coverage on Root in a report on Wednesday, January 10th. They issued a “market perform” rating on the stock. JMP Securities raised their price objective on Root from $15.00 to $90.00 and gave the company a “market outperform” rating in a report on Wednesday, May 1st. Finally, Wells Fargo & Company lifted their target price on Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 1st. Five research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $39.50.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Citigroup Inc. grew its stake in shares of Root by 218,250.0% during the third quarter. Citigroup Inc. now owns 4,367 shares of the company’s stock valued at $42,000 after buying an additional 4,365 shares during the last quarter. Barclays PLC boosted its holdings in shares of Root by 229,380.0% during the third quarter. Barclays PLC now owns 11,474 shares of the company’s stock worth $109,000 after purchasing an additional 11,469 shares during the period. Corton Capital Inc. purchased a new stake in shares of Root during the third quarter worth about $120,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Root during the third quarter worth about $158,000. Finally, Jump Financial LLC purchased a new stake in shares of Root during the fourth quarter worth about $234,000. Institutional investors own 59.82% of the company’s stock.

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.