Root (NASDAQ:ROOT) Trading Up 4.9% – Still a Buy?

Root, Inc. (NASDAQ:ROOT)’s stock price was up 4.9% on Friday . The stock traded as high as $83.39 and last traded at $82.68. Approximately 173,486 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 548,334 shares. The stock had previously closed at $78.81.

Analyst Upgrades and Downgrades

ROOT has been the topic of several research analyst reports. UBS Group boosted their price target on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. Wells Fargo & Company boosted their target price on shares of Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a research report on Friday, November 1st. Jefferies Financial Group decreased their price target on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research note on Wednesday, October 9th. JMP Securities reiterated a “market outperform” rating and set a $90.00 price target on shares of Root in a research report on Tuesday, October 15th. Finally, Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $90.00 price objective (up previously from $82.00) on shares of Root in a report on Tuesday, November 5th. Four equities research analysts have rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $59.13.

Root Stock Up 11.6 %

The stock has a market capitalization of $1.33 billion, a P/E ratio of -69.35 and a beta of 2.34. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39. The firm has a 50 day moving average of $47.27 and a 200-day moving average of $52.50.

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

Insider Transactions at Root

In related news, major shareholder Meyer Malka sold 50,959 shares of Root stock in a transaction dated Thursday, October 31st. The stock was sold at an average price of $84.78, for a total value of $4,320,304.02. Following the sale, the insider now owns 102 shares of the company’s stock, valued at approximately $8,647.56. The trade was a 99.80 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last ninety days, insiders sold 244,905 shares of company stock worth $20,247,819. 11.71% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Root

A number of institutional investors and hedge funds have recently made changes to their positions in ROOT. Alpha DNA Investment Management LLC increased its holdings in Root by 5.5% during the second quarter. Alpha DNA Investment Management LLC now owns 9,306 shares of the company’s stock worth $480,000 after buying an additional 486 shares during the last quarter. Verition Fund Management LLC grew its holdings in shares of Root by 15.2% during the 3rd quarter. Verition Fund Management LLC now owns 9,788 shares of the company’s stock valued at $370,000 after purchasing an additional 1,288 shares during the last quarter. Vanguard Personalized Indexing Management LLC increased its holdings in shares of Root by 76.8% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after buying an additional 2,576 shares in the last quarter. MetLife Investment Management LLC boosted its stake in shares of Root by 129.1% during the third quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock valued at $194,000 after purchasing an additional 2,889 shares in the last quarter. Finally, Algert Global LLC bought a new stake in Root during the 2nd quarter worth approximately $288,000. 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.