Root (NASDAQ:ROOT) Shares Gap Down to $69.91

Root, Inc. (NASDAQ:ROOT)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $69.91, but opened at $67.00. Root shares last traded at $58.07, with a volume of 411,458 shares trading hands.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Jefferies Financial Group upgraded Root from a “hold” rating to a “buy” rating and raised their price target for the stock from $10.00 to $40.00 in a research note on Friday, March 1st. TD Cowen initiated coverage on shares of Root in a report on Wednesday, January 10th. They issued a “market perform” rating for the company. Cantor Fitzgerald upgraded shares of Root from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $9.00 to $13.00 in a research report on Thursday, February 22nd. Wells Fargo & Company raised their price target on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a report on Wednesday. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating and set a $70.00 price objective (up previously from $22.00) on shares of Root in a report on Wednesday, April 24th. Five analysts have rated the stock with a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $39.50.

Root Stock Down 19.9 %

The firm’s 50 day moving average is $53.65 and its two-hundred day moving average is $25.02. The company has a current ratio of 1.60, a quick ratio of 1.60 and a debt-to-equity ratio of 1.80. The stock has a market cap of $817.60 million, a price-to-earnings ratio of -7.23 and a beta of 2.72.

Root (NASDAQ:ROOT) last released its earnings results on Tuesday, April 30th. The company reported ($0.42) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($2.51) by $2.09. Root had a negative net margin of 17.61% and a negative return on equity of 60.68%. The firm had revenue of $254.90 million during the quarter, compared to the consensus estimate of $203.99 million. During the same period in the previous year, the firm earned ($2.88) earnings per share. Root’s revenue was up 263.6% compared to the same quarter last year. On average, sell-side analysts predict that Root, Inc. will post -7.87 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Cannell Capital LLC grew its holdings in shares of Root by 144.0% during the 4th quarter. Cannell Capital LLC now owns 717,043 shares of the company’s stock worth $7,515,000 after purchasing an additional 423,120 shares during the period. Raymond James & Associates acquired a new position in Root during the third quarter valued at approximately $1,315,000. HST Ventures LLC grew its stake in Root by 21.9% during the fourth quarter. HST Ventures LLC now owns 51,890 shares of the company’s stock worth $544,000 after buying an additional 9,317 shares during the period. Trexquant Investment LP increased its position in shares of Root by 43.4% in the fourth quarter. Trexquant Investment LP now owns 46,570 shares of the company’s stock worth $488,000 after acquiring an additional 14,096 shares in the last quarter. Finally, Raymond James Financial Services Advisors Inc. increased its position in shares of Root by 37.6% in the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 34,382 shares of the company’s stock worth $360,000 after acquiring an additional 9,390 shares in the last quarter. 59.82% of the stock is 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.