Root, Inc. (NASDAQ:ROOT) Short Interest Up 33.9% in December

Root, Inc. (NASDAQ:ROOT) was the target of a large growth in short interest in the month of December. As of December 31st, there was short interest totalling 1,580,000 shares, a growth of 33.9% from the December 15th total of 1,180,000 shares. Based on an average daily trading volume, of 681,700 shares, the days-to-cover ratio is presently 2.3 days.

Root Stock Down 3.4 %

NASDAQ ROOT traded down $3.02 during trading hours on Friday, hitting $85.31. The company had a trading volume of 273,252 shares, compared to its average volume of 254,648. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39. Root has a fifty-two week low of $7.22 and a fifty-two week high of $118.15. The company has a market capitalization of $1.29 billion, a price-to-earnings ratio of -69.36 and a beta of 2.55. The firm’s 50 day moving average is $84.61 and its 200 day moving average is $62.35.

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

Wall Street Analysts Forecast Growth

ROOT has been the topic of several recent analyst reports. Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. Cantor Fitzgerald raised shares of Root to a “strong-buy” rating in a research note on Thursday, October 3rd. UBS Group lifted their price target on shares of Root from $61.00 to $67.00 and gave the company a “neutral” rating in a report on Monday, November 4th. Jefferies Financial Group dropped their price objective on Root from $84.00 to $72.00 and set a “buy” rating for the company in a report on Wednesday, October 9th. Finally, Keefe, Bruyette & Woods reiterated an “outperform” rating and issued a $90.00 target price (up previously from $82.00) on shares of Root in a report on Tuesday, November 5th. Six investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, Root presently has an average rating of “Hold” and an average price target of $59.38.

Insider Activity

In related news, major shareholder Meyer Malka sold 75,839 shares of the firm’s stock in a transaction that occurred on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the transaction, the insider now directly owns 43,107 shares of the company’s stock, valued at $3,500,719.47. This trade represents a 63.76 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Julie Szudarek sold 2,000 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $96.33, for a total transaction of $192,660.00. Following the completion of the transaction, the director now owns 15,003 shares in the company, valued at approximately $1,445,238.99. This trade represents a 11.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 246,905 shares of company stock valued at $20,440,479 in the last three months. 11.71% of the stock is currently owned by company insiders.

Institutional Trading of Root

A number of hedge funds and other institutional investors have recently modified their holdings of ROOT. Hood River Capital Management LLC acquired a new position in shares of Root in the 2nd quarter worth approximately $9,547,000. Driehaus Capital Management LLC bought a new position in Root during the second quarter worth $9,154,000. State Street Corp boosted its holdings in Root by 0.3% in the third quarter. State Street Corp now owns 176,891 shares of the company’s stock worth $6,683,000 after purchasing an additional 444 shares during the period. Bank of New York Mellon Corp bought a new stake in Root during the second quarter valued at $1,280,000. Finally, Nordea Investment Management AB raised its holdings in shares of Root by 7.3% during the fourth quarter. Nordea Investment Management AB now owns 20,697 shares of the company’s stock worth $1,497,000 after purchasing an additional 1,416 shares during the period. 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.