Root (NASDAQ:ROOT) Stock Price Down 7.2% – Here’s What Happened

Root, Inc. (NASDAQ:ROOT) shares traded down 7.2% during trading on Tuesday . The stock traded as low as $136.40 and last traded at $134.92. 136,412 shares were traded during trading, a decline of 74% from the average session volume of 518,708 shares. The stock had previously closed at $145.41.

Analyst Ratings Changes

A number of brokerages recently weighed in on ROOT. Wall Street Zen downgraded shares of Root from a “buy” rating to a “hold” rating in a research report on Saturday. Jefferies Financial Group increased their price objective on Root from $115.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, April 11th. UBS Group increased their price target on shares of Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a research report on Friday, March 7th. Scotiabank reiterated a “sector perform” rating on shares of Root in a research note on Sunday, March 2nd. Finally, Wells Fargo & Company upped their price target on Root from $105.00 to $142.00 and gave the company an “equal weight” rating in a research report on Thursday, May 8th. Six research analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $136.40.

Root Trading Down 6.9%

The stock has a 50-day moving average of $137.94 and a two-hundred day moving average of $116.92. The company has a market cap of $2.08 billion, a P/E ratio of -109.90 and a beta of 2.31. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.07 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.62. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The business had revenue of $349.40 million during the quarter, compared to analysts’ expectations of $305.24 million. During the same quarter in the prior year, the business posted ($0.42) earnings per share. The business’s quarterly revenue was up 37.2% on a year-over-year basis. On average, equities research analysts predict that Root, Inc. will post -0.08 earnings per share for the current year.

Insider Activity

In other Root news, CEO Alexander E. Timm sold 1,144 shares of the business’s stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $134.01, for a total transaction of $153,307.44. Following the completion of the sale, the chief executive officer now directly owns 161,625 shares in the company, valued at approximately $21,659,366.25. The trade was a 0.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Meyer Malka sold 225,000 shares of the company’s stock in a transaction on Wednesday, April 30th. The shares were sold at an average price of $135.81, for a total value of $30,557,250.00. Following the completion of the sale, the insider now owns 503,800 shares of the company’s stock, valued at approximately $68,421,078. The trade was a 30.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 254,742 shares of company stock valued at $34,553,788. Corporate insiders own 11.76% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of ROOT. Bayforest Capital Ltd acquired a new stake in Root during the 1st quarter worth approximately $361,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Root by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company’s stock valued at $686,000 after acquiring an additional 229 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Root by 122.2% during the 1st quarter. AQR Capital Management LLC now owns 10,229 shares of the company’s stock worth $1,365,000 after buying an additional 5,626 shares during the last quarter. Twin Tree Management LP acquired a new position in Root during the first quarter valued at approximately $37,000. Finally, Driehaus Capital Management LLC purchased a new position in Root in the first quarter valued at about $20,423,000. 59.82% of the stock is owned by institutional investors and hedge funds.

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.