Root (NASDAQ:ROOT) Trading Down 3.7% – Time to Sell?

Root, Inc. (NASDAQ:ROOT)’s share price dropped 3.7% during trading on Friday . The company traded as low as $55.26 and last traded at $55.26. 98,480 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 302,863 shares. The stock had previously closed at $57.41.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. TD Cowen reiterated a “hold” rating on shares of Root in a research note on Wednesday, June 17th. Zacks Research upgraded shares of Root from a “strong sell” rating to a “hold” rating in a research report on Monday, June 8th. Jefferies Financial Group lowered shares of Root from a “buy” rating to a “hold” rating and decreased their price target for the company from $78.00 to $58.00 in a report on Tuesday, August 11th. Keefe, Bruyette & Woods lowered their price objective on shares of Root from $95.00 to $80.00 and set an “outperform” rating for the company in a research report on Thursday, August 6th. Finally, UBS Group set a $50.00 price objective on shares of Root and gave the stock a “neutral” rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $62.25.

Root Price Performance

The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.02. The stock has a market capitalization of $853.51 million, a price-to-earnings ratio of 15.56 and a beta of 2.89. The business’s 50 day simple moving average is $56.68 and its 200-day simple moving average is $54.15.

Root (NASDAQ:ROOT) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.66. Root had a return on equity of 19.72% and a net margin of 3.78%.The company had revenue of $389.20 million during the quarter, compared to analysts’ expectations of $395.14 million. During the same quarter in the prior year, the business posted $1.29 earnings per share. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year. Research analysts anticipate that Root, Inc. will post 3.28 earnings per share for the current year.

Hedge Funds Weigh In On Root

Institutional investors and hedge funds have recently bought and sold shares of the stock. T. Rowe Price Investment Management Inc. increased its stake in shares of Root by 8.5% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 946,632 shares of the company’s stock valued at $68,376,000 after acquiring an additional 74,427 shares during the period. Capital Research Global Investors boosted its stake in Root by 31.7% during the 4th quarter. Capital Research Global Investors now owns 654,252 shares of the company’s stock valued at $47,257,000 after purchasing an additional 157,654 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Root by 4.1% during the 4th quarter. Geode Capital Management LLC now owns 310,967 shares of the company’s stock valued at $22,466,000 after purchasing an additional 12,238 shares during the period. State Street Corp increased its position in shares of Root by 5.0% during the 4th quarter. State Street Corp now owns 258,168 shares of the company’s stock valued at $18,647,000 after purchasing an additional 12,321 shares during the period. Finally, Findell Capital Management LLC raised its stake in shares of Root by 291.7% in the 4th quarter. Findell Capital Management LLC now owns 235,000 shares of the company’s stock worth $16,974,000 after buying an additional 175,000 shares in the last quarter. Institutional investors own 59.82% of the company’s stock.

About Root

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.