Root (NASDAQ:ROOT) Trading 10.3% Higher Following Analyst Upgrade

Root, Inc. (NASDAQ:ROOT)’s stock price was up 10.3% during mid-day trading on Tuesday after Keefe, Bruyette & Woods raised their price target on the stock from $90.00 to $150.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Root traded as high as $126.73 and last traded at $130.59. Approximately 43,343 shares changed hands during mid-day trading, a decline of 92% from the average daily volume of 518,859 shares. The stock had previously closed at $118.39.

Several other analysts have also recently commented on ROOT. Jefferies Financial Group increased their target price on Root from $115.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, April 11th. UBS Group increased their price objective on shares of Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, March 7th. Scotiabank reaffirmed a “sector perform” rating on shares of Root in a research note on Sunday, March 2nd. Finally, Wells Fargo & Company upped their target price on shares of Root from $97.00 to $105.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 10th. Six equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Root currently has an average rating of “Hold” and a consensus price target of $112.67.

Insider Activity

In related news, CEO Alexander E. Timm sold 1,144 shares of the company’s stock in a transaction dated Tuesday, April 1st. The stock was sold at an average price of $134.01, for a total value of $153,307.44. Following the completion of the sale, the chief executive officer now owns 161,625 shares in the company, valued at approximately $21,659,366.25. This represents a 0.70 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Mahtiyar Bonakdarpour sold 5,515 shares of the stock in a transaction dated Wednesday, April 2nd. The shares were sold at an average price of $124.78, for a total value of $688,161.70. Following the completion of the transaction, the insider now directly owns 286,901 shares in the company, valued at $35,799,506.78. The trade was a 1.89 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 8,659 shares of company stock valued at $1,191,469. 11.71% of the stock is currently owned by insiders.

Institutional Trading of Root

Institutional investors and hedge funds have recently modified their holdings of the stock. Russell Investments Group Ltd. boosted its stake in Root by 651.8% during the 4th quarter. Russell Investments Group Ltd. now owns 421 shares of the company’s stock worth $31,000 after acquiring an additional 365 shares during the last quarter. KLP Kapitalforvaltning AS bought a new position in shares of Root during the fourth quarter worth $94,000. Aquatic Capital Management LLC boosted its position in shares of Root by 92.1% during the fourth quarter. Aquatic Capital Management LLC now owns 1,537 shares of the company’s stock worth $112,000 after purchasing an additional 737 shares in the last quarter. SBI Securities Co. Ltd. acquired a new position in shares of Root in the 4th quarter valued at $154,000. Finally, FreeGulliver LLC bought a new stake in shares of Root in the 4th quarter valued at $203,000. 59.82% of the stock is owned by institutional investors.

Root Price Performance

The company has a 50 day moving average of $130.39 and a 200 day moving average of $96.39. 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 firm has a market cap of $2.05 billion, a price-to-earnings ratio of -109.72 and a beta of 2.41.

Root (NASDAQ:ROOT) last released its quarterly earnings results on Wednesday, February 26th. The company reported $1.30 EPS for the quarter, topping analysts’ consensus estimates of ($0.63) by $1.93. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The company had revenue of $326.70 million for the quarter, compared to analyst estimates of $287.79 million. Equities research analysts predict that Root, Inc. will post -0.08 EPS for the current fiscal year.

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.