Root (NASDAQ:ROOT) Shares Down 4.4% After Insider Selling

Root, Inc. (NASDAQ:ROOT) fell 4.4% during mid-day trading on Monday following insider selling activity. The stock traded as low as $67.27 and last traded at $67.87. 94,575 shares changed hands during trading, a decline of 82% from the average session volume of 531,950 shares. The stock had previously closed at $71.01.

Specifically, major shareholder Meyer Malka sold 50,959 shares of the firm’s stock in a transaction that occurred on Thursday, October 31st. The shares were sold at an average price of $84.78, for a total transaction of $4,320,304.02. Following the completion of the sale, the insider now owns 102 shares of the company’s stock, valued at $8,647.56. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Jefferies Financial Group cut their price target on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $90.00 price objective (up from $82.00) on shares of Root in a report on Tuesday. JMP Securities restated a “market outperform” rating and issued a $90.00 target price on shares of Root in a report on Tuesday, October 15th. UBS Group boosted their price objective on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a report on Monday. Finally, Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a report on Thursday, October 3rd. Four equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $59.13.

Root Stock Up 3.6 %

The stock has a 50-day moving average of $41.71 and a 200 day moving average of $51.38. The company has a market capitalization of $1.10 billion, a PE ratio of -59.79 and a beta of 2.34. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.61) by $1.96. The firm had revenue of $305.70 million during the quarter, compared to analyst estimates of $272.77 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The business’s revenue was up 165.1% compared to the same quarter last year. During the same period last year, the firm posted ($3.16) EPS. Sell-side analysts anticipate that Root, Inc. will post -1.2 EPS for the current year.

Institutional Trading of Root

Large investors have recently added to or reduced their stakes in the stock. Alpha DNA Investment Management LLC boosted its stake in Root by 5.5% in the second quarter. Alpha DNA Investment Management LLC now owns 9,306 shares of the company’s stock valued at $480,000 after acquiring an additional 486 shares during the last quarter. Vanguard Personalized Indexing Management LLC raised its holdings in shares of Root by 76.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after purchasing an additional 2,576 shares during the period. Sequoia Financial Advisors LLC purchased a new position in Root in the first quarter valued at approximately $293,000. Algert Global LLC bought a new position in Root during the second quarter valued at $288,000. Finally, Versor Investments LP purchased a new stake in Root in the third quarter worth $216,000. Hedge funds and other institutional investors own 59.82% of the company’s stock.

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.