Root (NASDAQ:ROOT) Stock Price Down 7.9% – Should You Sell?

Root, Inc. (NASDAQ:ROOT)’s stock price dropped 7.9% during mid-day trading on Wednesday . The company traded as low as $162.58 and last traded at $155.16. Approximately 115,044 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 506,422 shares. The stock had previously closed at $168.56.

Analyst Ratings Changes

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

Root Stock Down 10.5 %

The firm has a 50-day moving average price of $117.87 and a 200 day moving average price of $83.66. The company has a market cap of $2.29 billion, a price-to-earnings ratio of -122.88 and a beta of 2.48. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39.

Root (NASDAQ:ROOT) last released its quarterly earnings results on Wednesday, February 26th. The company reported $1.30 EPS for the quarter, topping analysts’ consensus estimates of ($0.63) by $1.93. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business had revenue of $326.70 million for the quarter, compared to analyst estimates of $287.79 million. Sell-side analysts predict that Root, Inc. will post -0.08 EPS for the current year.

Institutional Investors Weigh In On Root

A number of hedge funds and other institutional investors have recently made changes to their positions in ROOT. Vanguard Group Inc. raised its holdings in Root by 16.2% in the 4th quarter. Vanguard Group Inc. now owns 526,928 shares of the company’s stock valued at $38,250,000 after acquiring an additional 73,413 shares in the last quarter. T. Rowe Price Investment Management Inc. bought a new position in shares of Root in the fourth quarter worth $29,661,000. Renaissance Technologies LLC raised its stake in Root by 41.8% in the fourth quarter. Renaissance Technologies LLC now owns 263,515 shares of the company’s stock valued at $19,129,000 after purchasing an additional 77,699 shares in the last quarter. State Street Corp raised its stake in Root by 0.3% in the third quarter. State Street Corp now owns 176,891 shares of the company’s stock valued at $6,683,000 after purchasing an additional 444 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. lifted its position in Root by 163.2% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 127,923 shares of the company’s stock worth $9,286,000 after purchasing an additional 79,317 shares during the period. 59.82% of the stock is currently 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.