Root (NASDAQ:ROOT) Sets New 52-Week Low – Time to Sell?

Root, Inc. (NASDAQ:ROOT) shares hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $65.02 and last traded at $67.7750, with a volume of 148354 shares changing hands. The stock had previously closed at $69.85.

Wall Street Analysts Forecast Growth

ROOT has been the topic of several research reports. Weiss Ratings restated a “sell (d+)” rating on shares of Root in a report on Monday, December 29th. Zacks Research upgraded Root from a “strong sell” rating to a “hold” rating in a report on Monday, January 12th. Keefe, Bruyette & Woods reiterated an “outperform” rating on shares of Root in a research note on Friday, November 7th. Wall Street Zen cut Root from a “hold” rating to a “sell” rating in a research report on Sunday, January 18th. Finally, Wells Fargo & Company set a $75.00 price target on shares of Root and gave the stock an “equal weight” rating in a report on Tuesday, January 13th. Two research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $121.60.

Root Trading Down 4.2%

The firm has a market capitalization of $1.04 billion, a PE ratio of 20.22 and a beta of 2.70. The firm’s 50-day simple moving average is $75.40 and its 200-day simple moving average is $87.63. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.76.

Root (NASDAQ:ROOT) last announced its quarterly earnings results on Wednesday, November 5th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08. Root had a net margin of 3.80% and a return on equity of 23.36%. The business had revenue of $387.80 million for the quarter, compared to analyst estimates of $363.06 million. During the same quarter last year, the firm earned $1.35 EPS. The company’s revenue was up 26.9% on a year-over-year basis. Equities analysts expect that Root, Inc. will post -0.08 earnings per share for the current year.

Institutional Trading of Root

Institutional investors and hedge funds have recently bought and sold shares of the company. State of Alaska Department of Revenue bought a new position in shares of Root during the 3rd quarter valued at approximately $50,000. Russell Investments Group Ltd. increased its position in Root by 511.7% during the second quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock valued at $94,000 after acquiring an additional 614 shares during the last quarter. Ameritas Investment Partners Inc. increased its position in Root by 28.5% during the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock valued at $139,000 after acquiring an additional 241 shares during the last quarter. Advisory Services Network LLC purchased a new stake in shares of Root in the third quarter valued at $144,000. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Root by 237.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock worth $164,000 after acquiring an additional 899 shares during the last quarter. 59.82% of the stock is currently owned by institutional investors.

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.