Root (NASDAQ:ROOT) Shares Down 3.7% – Should You Sell?

Root, Inc. (NASDAQ:ROOT)’s stock price traded down 3.7% during trading on Friday . The stock traded as low as $55.26 and last traded at $55.26. 98,480 shares were traded during mid-day trading, a decline of 67% from the average session volume of 302,863 shares. The stock had previously closed at $57.41.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on ROOT shares. TD Cowen reaffirmed a “hold” rating on shares of Root in a research report on Wednesday, June 17th. Keefe, Bruyette & Woods dropped their target price on Root from $95.00 to $80.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. UBS Group set a $50.00 price target on Root and gave the stock a “neutral” rating in a research report on Monday, May 11th. Zacks Research upgraded Root from a “strong sell” rating to a “hold” rating in a report on Monday, June 8th. Finally, Weiss Ratings raised shares of Root from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $62.25.

Root Trading Down 4.0%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.60. The business’s 50 day moving average is $56.68 and its 200-day moving average is $54.15. The firm has a market cap of $853.51 million, a P/E ratio of 15.56 and a beta of 2.89.

Root (NASDAQ:ROOT) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.66. The firm had revenue of $389.20 million for the quarter, compared to analysts’ expectations of $395.14 million. Root had a net margin of 3.78% and a return on equity of 19.72%. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.29 earnings per share. As a group, analysts forecast that Root, Inc. will post 3.28 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Root

Several large investors have recently modified their holdings of the stock. CoreCap Advisors LLC acquired a new position in Root in the second quarter worth about $42,000. Quantinno Capital Management LP bought a new position in Root during the 1st quarter worth approximately $920,000. First Trust Advisors LP lifted its holdings in Root by 49.1% during the 1st quarter. First Trust Advisors LP now owns 68,050 shares of the company’s stock worth $3,006,000 after buying an additional 22,422 shares during the last quarter. Zweig DiMenna Associates LLC acquired a new position in shares of Root in the 1st quarter worth approximately $1,193,000. Finally, HB Wealth Management LLC grew its position in shares of Root by 122.2% in the 1st quarter. HB Wealth Management LLC now owns 47,248 shares of the company’s stock worth $2,087,000 after acquiring an additional 25,986 shares in the last quarter. Institutional investors own 59.82% of the company’s stock.

Root Company Profile

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.