Root (NASDAQ:ROOT) Reaches New 12-Month Low – What’s Next?

Shares of Root, Inc. (NASDAQ:ROOT) reached a new 52-week low during mid-day trading on Friday . The company traded as low as $68.08 and last traded at $69.10, with a volume of 29811 shares. The stock had previously closed at $69.03.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. UBS Group restated a “neutral” rating and set a $105.00 price target (down from $140.00) on shares of Root in a report on Monday, August 18th. Zacks Research raised Root from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. Wells Fargo & Company boosted their target price on Root from $89.00 to $96.00 and gave the company an “equal weight” rating in a research note on Thursday, November 6th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Root in a research note on Wednesday. Finally, Jefferies Financial Group reduced their price target on Root from $172.00 to $138.00 and set a “buy” rating for the company in a report on Monday, August 11th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $125.80.

Root Price Performance

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.23 and a quick ratio of 1.23. The stock has a market capitalization of $1.17 billion, a P/E ratio of 22.82 and a beta of 2.21. The stock’s fifty day moving average is $84.52 and its 200-day moving average is $107.45.

Root (NASDAQ:ROOT) last announced its quarterly earnings results on Wednesday, November 5th. The company reported ($0.35) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08. The company had revenue of $387.80 million during the quarter, compared to analysts’ expectations of $363.06 million. Root had a return on equity of 23.36% and a net margin of 3.80%.The business’s quarterly revenue was up 26.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.35 earnings per share. On average, equities analysts anticipate that Root, Inc. will post -0.08 earnings per share for the current year.

Insider Buying and Selling

In other Root news, CEO Alexander E. Timm sold 10,861 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $88.88, for a total transaction of $965,325.68. Following the transaction, the chief executive officer owned 157,748 shares in the company, valued at $14,020,642.24. This trade represents a 6.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the business’s stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $89.74, for a total transaction of $516,005.00. Following the completion of the sale, the insider owned 274,226 shares of the company’s stock, valued at $24,609,041.24. The trade was a 2.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 11.76% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Root

A number of hedge funds have recently bought and sold shares of ROOT. Gilder Gagnon Howe & Co. LLC increased its stake in shares of Root by 3.0% in the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company’s stock worth $797,000 after purchasing an additional 181 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Root by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company’s stock worth $686,000 after buying an additional 229 shares during the period. Ameritas Investment Partners Inc. lifted its holdings in shares of Root by 28.5% during the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock worth $139,000 after buying an additional 241 shares during the last quarter. Twin Tree Management LP bought a new stake in shares of Root in the first quarter valued at approximately $37,000. Finally, ProShare Advisors LLC grew its stake in shares of Root by 16.9% in the second quarter. ProShare Advisors LLC now owns 2,184 shares of the company’s stock worth $279,000 after acquiring an additional 315 shares during the last quarter. 59.82% of the stock is currently owned by 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.