Root (NASDAQ:ROOT) Sets New 1-Year Low – What’s Next?

Root, Inc. (NASDAQ:ROOT) shares reached a new 52-week low 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.

Analyst Ratings Changes

ROOT has been the subject of a number of research reports. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Root in a research note on Wednesday. Keefe, Bruyette & Woods reaffirmed an “outperform” rating on shares of Root in a research note on Friday, November 7th. UBS Group reaffirmed a “neutral” rating and set a $105.00 target price (down from $140.00) on shares of Root in a report on Monday, August 18th. Zacks Research upgraded shares of Root from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. Finally, Jefferies Financial Group cut their price target on shares of Root from $172.00 to $138.00 and set a “buy” rating for the company in a report on Monday, August 11th. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $125.80.

Root Trading Up 1.5%

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.23 and a current ratio of 1.23. The firm has a market capitalization of $1.09 billion, a P/E ratio of 21.33 and a beta of 2.21. The firm has a 50 day moving average price of $84.99 and a two-hundred day moving average price of $108.13.

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

Insider Buying and Selling

In related news, insider Mahtiyar Bonakdarpour sold 5,750 shares of the company’s stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total value of $516,005.00. Following the completion of the sale, the insider owned 274,226 shares in the company, valued at approximately $24,609,041.24. This represents a 2.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Alexander E. Timm sold 10,861 shares of the firm’s 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 completion of the transaction, the chief executive officer directly owned 157,748 shares of the company’s stock, valued at $14,020,642.24. This represents a 6.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 11.76% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its holdings in shares of Root by 25.9% in the 3rd quarter. Vanguard Group Inc. now owns 724,541 shares of the company’s stock valued at $64,854,000 after purchasing an additional 149,064 shares during the period. T. Rowe Price Investment Management Inc. increased its stake in shares of Root by 66.3% in the first quarter. T. Rowe Price Investment Management Inc. now owns 679,696 shares of the company’s stock worth $90,699,000 after purchasing an additional 271,097 shares during the period. American Century Companies Inc. lifted its position in shares of Root by 54.8% during the 2nd quarter. American Century Companies Inc. now owns 357,176 shares of the company’s stock worth $45,708,000 after purchasing an additional 126,467 shares during the last quarter. Ensign Peak Advisors Inc acquired a new position in shares of Root during the 2nd quarter worth about $33,829,000. Finally, Invesco Ltd. boosted its stake in Root by 5,575.0% during the 1st quarter. Invesco Ltd. now owns 256,792 shares of the company’s stock valued at $34,266,000 after purchasing an additional 252,267 shares during the period. 59.82% of the stock is owned by institutional investors and hedge funds.

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.