Root (NASDAQ:ROOT) Shares Gap Down After Insider Selling

Root, Inc. (NASDAQ:ROOT) shares gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $151.11, but opened at $146.29. Root shares last traded at $145.06, with a volume of 212,584 shares traded.

Specifically, Director Doug Ulman sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, March 24th. The stock was sold at an average price of $175.00, for a total value of $350,000.00. Following the completion of the sale, the director now owns 6,201 shares in the company, valued at approximately $1,085,175. The trade was a 24.39 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Wall Street Analyst Weigh In

Several analysts recently issued reports on ROOT shares. Scotiabank reissued a “sector perform” rating on shares of Root in a research note on Sunday, March 2nd. Wells Fargo & Company reaffirmed a “buy” rating on shares of Root in a research note on Sunday, March 2nd. Finally, UBS Group upped their price objective on shares of Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday, March 7th. Five investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, Root presently has an average rating of “Moderate Buy” and an average target price of $88.33.

Root Stock Performance

The business has a 50-day moving average price of $119.17 and a 200 day moving average price of $84.13. The stock has a market capitalization of $2.22 billion, a P/E ratio of -117.93 and a beta of 2.48. 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 announced its quarterly earnings data on Wednesday, February 26th. The company reported $1.30 EPS for the quarter, beating the consensus estimate of ($0.63) by $1.93. The company had revenue of $326.70 million for the quarter, compared to the consensus estimate of $287.79 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. As a group, sell-side analysts forecast that Root, Inc. will post -0.08 EPS for the current fiscal year.

Institutional Trading of Root

A number of institutional investors and hedge funds have recently modified their holdings of ROOT. FMR LLC boosted its position in shares of Root by 966.2% during the third quarter. FMR LLC now owns 18,040 shares of the company’s stock valued at $682,000 after buying an additional 16,348 shares during the last quarter. Barclays PLC raised its stake in Root by 361.6% during the 3rd quarter. Barclays PLC now owns 14,033 shares of the company’s stock valued at $529,000 after buying an additional 10,993 shares during the last quarter. Nordea Investment Management AB lifted its holdings in shares of Root by 7.3% during the 4th quarter. Nordea Investment Management AB now owns 20,697 shares of the company’s stock valued at $1,497,000 after buying an additional 1,416 shares during the period. Franklin Resources Inc. purchased a new position in shares of Root in the 3rd quarter worth $249,000. Finally, Point72 Asset Management L.P. purchased a new stake in Root during the third quarter valued at $428,000. Institutional investors own 59.82% of the company’s stock.

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.