Root (NASDAQ:ROOT) Stock Price Down 7.4% – What’s Next?

Root, Inc. (NASDAQ:ROOT)’s share price dropped 7.4% on Wednesday . The company traded as low as $57.16 and last traded at $57.18. Approximately 136,453 shares changed hands during trading, a decline of 56% from the average session volume of 307,771 shares. The stock had previously closed at $61.73.

Analyst Ratings Changes

A number of brokerages recently weighed in on ROOT. Keefe, Bruyette & Woods lowered their target price on shares of Root from $104.00 to $95.00 and set an “outperform” rating on the stock in a research note on Tuesday, April 7th. TD Cowen reissued a “hold” rating on shares of Root in a research note on Wednesday, June 17th. Wells Fargo & Company increased their price target on shares of Root from $58.00 to $61.00 and gave the stock an “equal weight” rating in a report on Thursday, July 9th. UBS Group set a $50.00 price objective on shares of Root and gave the stock a “neutral” rating in a report on Monday, May 11th. Finally, Weiss Ratings lowered Root from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $86.00.

Root Stock Performance

The company has a market cap of $940.78 million, a P/E ratio of 17.79 and a beta of 2.85. The company’s fifty day moving average is $56.62 and its 200 day moving average is $56.88. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.61.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.84 by $1.25. Root had a net margin of 3.58% and a return on equity of 19.97%. The business had revenue of $393.50 million during the quarter, compared to analyst estimates of $398.16 million. During the same period in the prior year, the business posted $1.07 earnings per share. The company’s revenue was up 12.5% on a year-over-year basis. As a group, equities analysts predict that Root, Inc. will post 3.28 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Root

Several institutional investors and hedge funds have recently bought and sold shares of ROOT. CoreCap Advisors LLC bought a new stake in Root in the second quarter valued at approximately $42,000. Russell Investments Group Ltd. boosted its position in Root by 511.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock valued at $94,000 after buying an additional 614 shares during the period. Advisory Services Network LLC purchased a new stake in Root during the 3rd quarter valued at $144,000. Tower Research Capital LLC TRC grew its holdings in Root by 237.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock worth $164,000 after acquiring an additional 899 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank purchased a new position in shares of Root in the third quarter valued at about $194,000. 59.82% of the stock is currently owned by institutional investors.

Root Company Profile

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company’s core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.