Root (NASDAQ:ROOT) Shares Gap Down – What’s Next?

Root, Inc. (NASDAQ:ROOT) gapped down prior to trading on Thursday. The stock had previously closed at $57.15, but opened at $48.11. Root shares last traded at $51.7660, with a volume of 54,106 shares changing hands.

Wall Street Analyst Weigh In

ROOT has been the topic of a number of recent research reports. Jefferies Financial Group downgraded Root from a “buy” rating to a “hold” rating and lowered their target price for the company from $78.00 to $58.00 in a research report on Tuesday, August 11th. TD Cowen cut Root from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 20th. Wells Fargo & Company raised their target price on shares of Root from $47.00 to $53.00 and gave the company an “equal weight” rating in a research note on Thursday. Keefe, Bruyette & Woods dropped their price target on shares of Root from $95.00 to $80.00 and set an “outperform” rating on the stock in a research report on Thursday, August 6th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Root in a research note on Monday, October 26th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Root has an average rating of “Hold” and an average target price of $60.25.

Root Stock Down 20.3%

The company has a market cap of $705.26 million, a price-to-earnings ratio of 12.78 and a beta of 3.06. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a 50-day moving average price of $51.36 and a 200 day moving average price of $54.15.

Root (NASDAQ:ROOT) last issued its quarterly earnings data on Wednesday, November 4th. The company reported $0.86 EPS for the quarter, beating analysts’ consensus estimates of $0.63 by $0.23. The firm had revenue of $381.30 million for the quarter, compared to analyst estimates of $384.43 million. Root had a return on equity of 19.72% and a net margin of 3.78%. Sell-side analysts predict that Root, Inc. will post 4.46 EPS for the current year.

Institutional Trading of Root

A number of hedge funds have recently made changes to their positions in ROOT. CoreCap Advisors LLC acquired a new stake in Root during the 2nd quarter worth about $42,000. Sequoia Financial Advisors LLC bought a new stake in shares of Root during the 2nd quarter valued at about $219,000. State of Wyoming bought a new stake in shares of Root during the 3rd quarter valued at about $289,000. Quantinno Capital Management LP acquired a new stake in Root during the first quarter worth approximately $920,000. Finally, Zweig DiMenna Associates LLC acquired a new stake in Root during the first quarter worth approximately $1,193,000. 59.82% of the stock is owned by institutional investors and hedge funds.

About Root

Root, Inc (NASDAQ:ROOT) is an insurance technology company that uses mobile technology and data-driven underwriting to provide personal insurance products. The company is best known for its automobile insurance, which is offered through a digital platform designed to allow customers to obtain quotes, purchase coverage and manage policies through a smartphone.

Root’s auto insurance model uses information collected through its mobile application, including driving-related data, to evaluate individual driving behavior and help determine eligibility and pricing.