Root (NASDAQ:ROOT) Stock Price Down 7.2% – Time to Sell?

Shares of Root, Inc. (NASDAQ:ROOT) dropped 7.2% during mid-day trading on Tuesday . The company traded as low as $74.83 and last traded at $73.8480. Approximately 261,691 shares traded hands during trading, a decline of 7% from the average daily volume of 281,208 shares. The stock had previously closed at $79.60.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d+)” rating on shares of Root in a report on Monday, December 29th. Wells Fargo & Company set a $75.00 price objective on Root and gave the company an “equal weight” rating in a research report on Tuesday. Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Root in a research note on Friday, November 7th. Zacks Research lowered Root from a “hold” rating to a “strong sell” rating in a research note on Wednesday, December 10th. Finally, Wall Street Zen upgraded Root from a “sell” rating to a “hold” rating in a report on Saturday. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $121.60.

Root Trading Down 6.7%

The business has a 50 day moving average of $78.14 and a 200 day moving average of $91.75. The firm has a market capitalization of $1.15 billion, a price-to-earnings ratio of 22.44 and a beta of 2.70. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.23 and a quick ratio of 1.23.

Root (NASDAQ:ROOT) last issued its earnings results on Wednesday, November 5th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08. The firm had revenue of $387.80 million for 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 company’s revenue was up 26.9% compared to the same quarter last year. During the same quarter last year, the business earned $1.35 earnings per share. As a group, research analysts predict that Root, Inc. will post -0.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ROOT. State of Alaska Department of Revenue bought a new stake in shares of Root in the third quarter worth about $50,000. Russell Investments Group Ltd. lifted its holdings in shares of 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 purchasing an additional 614 shares in the last quarter. Ameritas Investment Partners Inc. grew its position in shares of Root by 28.5% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock valued at $139,000 after purchasing an additional 241 shares during the period. Advisory Services Network LLC bought a new stake in Root during the 3rd quarter worth approximately $144,000. Finally, Tower Research Capital LLC TRC increased its stake in Root by 237.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock worth $164,000 after purchasing an additional 899 shares in the last quarter. Institutional investors and hedge funds own 59.82% of the company’s stock.

About Root

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.