Root (NASDAQ:ROOT) Stock Price Up 6.8% on Analyst Upgrade

Root, Inc. (NASDAQ:ROOT)’s stock price was up 6.8% during trading on Tuesday after Wells Fargo & Company raised their price target on the stock from $78.00 to $80.00. Wells Fargo & Company currently has an equal weight rating on the stock. Root traded as high as $88.94 and last traded at $87.39. Approximately 122,304 shares traded hands during trading, a decline of 58% from the average daily volume of 290,256 shares. The stock had previously closed at $81.79.

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

Insiders Place Their Bets

In related news, Director Julie Szudarek sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, November 18th. The stock was 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 of the company’s stock, valued at $1,445,238.99. This trade represents a 11.76 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Meyer Malka sold 75,839 shares of the business’s stock in a transaction 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 sale, the insider now directly owns 43,107 shares in the company, valued at $3,500,719.47. This trade represents a 63.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 246,905 shares of company stock worth $20,440,479. 11.71% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Root

Several institutional investors and hedge funds have recently modified their holdings of the stock. Point72 DIFC Ltd purchased a new stake in Root during the 3rd quarter valued at about $33,000. MetLife Investment Management LLC lifted its stake in shares of Root by 129.1% in the third quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock worth $194,000 after buying an additional 2,889 shares in the last quarter. Versor Investments LP purchased a new stake in shares of Root during the third quarter valued at approximately $216,000. Franklin Resources Inc. bought a new stake in shares of Root during the third quarter valued at approximately $249,000. Finally, Algert Global LLC purchased a new position in Root in the 2nd quarter worth approximately $288,000. 59.82% of the stock is currently owned by institutional investors.

Root Price Performance

The firm has a 50-day moving average of $84.11 and a 200-day moving average of $61.76. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The firm has a market capitalization of $1.28 billion, a P/E ratio of -68.95 and a beta of 2.55.

Root (NASDAQ:ROOT) last announced its quarterly earnings results 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. 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 for the quarter, compared to the consensus estimate of $272.77 million. During the same period in the prior year, the company posted ($3.16) earnings per share. The company’s quarterly revenue was up 165.1% on a year-over-year basis. As a group, analysts predict that Root, Inc. will post -1.2 EPS for the current year.

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.