Root (NASDAQ:ROOT) Trading 4.9% Higher – Time to Buy?

Root, Inc. (NASDAQ:ROOT)’s share price rose 4.9% during trading on Friday . The company traded as high as $83.39 and last traded at $82.68. Approximately 173,486 shares traded 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.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on ROOT. JMP Securities reiterated a “market outperform” rating and set a $90.00 target price on shares of Root in a report on Tuesday, October 15th. Jefferies Financial Group reduced their target price on shares of Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. Wells Fargo & Company increased their price target on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a report on Friday, November 1st. Cantor Fitzgerald raised Root to a “strong-buy” rating in a research report on Thursday, October 3rd. Finally, UBS Group raised their target price on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a report on Monday, November 4th. Four equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $59.13.

Root Stock Up 12.8 %

The firm has a fifty day simple moving average of $48.28 and a 200-day simple moving average of $52.53. The company has a market capitalization of $1.34 billion, a PE ratio of -72.28 and a beta of 2.34. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39.

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

Insider Buying and Selling

In other Root news, major shareholder Meyer Malka sold 118,107 shares of the business’s stock in a transaction on Monday, November 11th. The shares were sold at an average price of $82.71, for a total transaction of $9,768,629.97. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last three months, insiders sold 244,905 shares of company stock worth $20,247,819. Corporate insiders own 11.71% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of ROOT. Point72 DIFC Ltd acquired a new stake in Root during the third quarter worth about $33,000. MetLife Investment Management LLC raised its position in shares of Root by 129.1% during the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock worth $194,000 after purchasing an additional 2,889 shares during the period. Versor Investments LP bought a new stake in shares of Root in the 3rd quarter worth approximately $216,000. Algert Global LLC acquired a new position in Root during the 2nd quarter valued at approximately $288,000. Finally, MML Investors Services LLC bought a new position in Root during the 3rd quarter worth $288,000. 59.82% of the stock is owned by institutional investors and hedge funds.

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.