Root (NASDAQ:ROOT) Stock Price Down 7.2% – Time to Sell?

Root, Inc. (NASDAQ:ROOT)’s stock price traded down 7.2% on Tuesday . The stock traded as low as $74.83 and last traded at $73.8480. 261,691 shares changed hands during trading, a decline of 7% from the average session volume of 281,208 shares. The stock had previously closed at $79.60.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on ROOT. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Root in a research report on Monday, December 29th. Keefe, Bruyette & Woods restated an “outperform” rating on shares of Root in a research note on Friday, November 7th. Zacks Research lowered shares of Root from a “hold” rating to a “strong sell” rating in a research report on Wednesday, December 10th. Wells Fargo & Company set a $75.00 target price on shares of Root and gave the company an “equal weight” rating in a research note on Tuesday. Finally, Wall Street Zen upgraded shares of Root from a “sell” rating to a “hold” rating in a research note on Saturday. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Root currently has a consensus rating of “Hold” and an average target price of $121.60.

Root Trading Down 6.7%

The firm has a market cap of $1.15 billion, a P/E ratio of 22.44 and a beta of 2.70. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 0.76. The company’s fifty day moving average price is $78.14 and its two-hundred day moving average price is $91.75.

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

Hedge Funds Weigh In On Root

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

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.