Root (NASDAQ:ROOT) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Root (NASDAQ:ROOT) from a buy rating to a hold rating in a report issued on Saturday morning.

Other equities research analysts have also issued research reports about the company. Keefe, Bruyette & Woods boosted their price target on Root from $150.00 to $170.00 and gave the stock an “outperform” rating in a research note on Thursday, May 8th. TD Cowen lifted their target price on Root from $51.00 to $125.00 and gave the stock a “hold” rating in a report on Tuesday, July 8th. Jefferies Financial Group lifted 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. Finally, Wells Fargo & Company decreased their target price on Root from $142.00 to $118.00 and set an “equal weight” rating for the company in a report on Thursday, July 10th. Seven investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $130.50.

Root Stock Up 2.8%

NASDAQ:ROOT opened at $119.99 on Friday. Root has a fifty-two week low of $34.04 and a fifty-two week high of $181.14. The stock has a market capitalization of $1.84 billion, a P/E ratio of 37.50 and a beta of 2.25. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.26 and a current ratio of 1.26. The company’s 50-day simple moving average is $129.81 and its 200-day simple moving average is $127.86.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.62. Root had a return on equity of 27.33% and a net margin of 4.11%. The business had revenue of $349.40 million for the quarter, compared to analyst estimates of $305.24 million. During the same quarter in the previous year, the firm earned ($0.42) earnings per share. The company’s revenue was up 37.2% on a year-over-year basis. On average, equities analysts anticipate that Root will post -0.08 earnings per share for the current fiscal year.

Insider Buying and Selling at Root

In other news, Director Julie Szudarek sold 2,790 shares of the company’s stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $133.80, for a total transaction of $373,302.00. Following the completion of the transaction, the director directly owned 13,332 shares of the company’s stock, valued at $1,783,821.60. This represents a 17.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Jerri Devard sold 1,895 shares of the company’s stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $141.50, for a total value of $268,142.50. Following the transaction, the director directly owned 18,532 shares of the company’s stock, valued at approximately $2,622,278. The trade was a 9.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 21,083 shares of company stock worth $2,805,069. 11.71% of the stock is currently owned by corporate insiders.

Institutional Trading of Root

Several large investors have recently made changes to their positions in ROOT. Russell Investments Group Ltd. increased its position in shares of Root by 651.8% during the fourth quarter. Russell Investments Group Ltd. now owns 421 shares of the company’s stock worth $31,000 after purchasing an additional 365 shares in the last quarter. Twin Tree Management LP purchased a new stake in shares of Root during the first quarter worth approximately $37,000. KBC Group NV purchased a new stake in shares of Root during the first quarter worth approximately $48,000. KLP Kapitalforvaltning AS purchased a new stake in shares of Root during the fourth quarter worth approximately $94,000. Finally, Aquatic Capital Management LLC increased 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. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.