Root (NASDAQ:ROOT) Rating Lowered to “Sell” at Wall Street Zen

Root (NASDAQ:ROOT) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

Other analysts have also recently issued reports about the stock. UBS Group restated a “neutral” rating and issued a $105.00 price objective (down from $140.00) on shares of Root in a research note on Monday, August 18th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Root in a report on Friday. Weiss Ratings restated a “hold (c)” rating on shares of Root in a report on Wednesday, October 8th. Wells Fargo & Company raised their price target on Root from $89.00 to $96.00 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Zacks Research lowered Root from a “hold” rating to a “strong sell” rating in a research note on Tuesday, October 7th. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $125.80.

Root Stock Performance

Shares of NASDAQ ROOT opened at $79.08 on Friday. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.26 and a current ratio of 1.26. The firm has a market cap of $1.22 billion, a price-to-earnings ratio of 23.89 and a beta of 2.21. The business’s 50-day simple moving average is $87.51 and its 200-day simple moving average is $112.16. Root has a 52 week low of $68.48 and a 52 week high of $181.14.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, November 5th. The company reported ($0.35) earnings per share for the quarter, topping the consensus estimate of ($0.43) by $0.08. The firm had revenue of $387.80 million during the quarter, compared to analyst estimates of $363.06 million. Root had a return on equity of 24.38% and a net margin of 3.80%.The company’s revenue for the quarter was up 26.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.35 EPS. As a group, equities research analysts expect that Root will post -0.08 earnings per share for the current fiscal year.

Insider Transactions at Root

In related news, insider Mahtiyar Bonakdarpour sold 5,750 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total value of $516,005.00. Following the completion of the transaction, the insider owned 274,226 shares of the company’s stock, valued at $24,609,041.24. This represents a 2.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Alexander E. Timm sold 10,861 shares of Root stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total value of $965,325.68. Following the sale, the chief executive officer directly owned 157,748 shares in the company, valued at $14,020,642.24. The trade was a 6.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 11.76% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Root

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Twin Tree Management LP acquired a new stake in Root in the 1st quarter valued at about $37,000. State of Alaska Department of Revenue acquired a new stake in shares of Root in the third quarter valued at approximately $50,000. Russell Investments Group Ltd. increased its holdings in shares of Root by 511.7% in the second 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. raised its position in Root by 28.5% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock worth $139,000 after purchasing an additional 241 shares during the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings 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 buying an additional 899 shares in the last quarter. Institutional investors own 59.82% of the company’s stock.

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.