Root (NASDAQ:ROOT) Shares Gap Down - Time to Sell?

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $109.40, but opened at $103.17. Root shares last traded at $104.58, with a volume of 110,775 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on ROOT. UBS Group upped their price target on shares of Root from $61.00 to $67.00 and gave the company a "neutral" rating in a report on Monday, November 4th. JMP Securities lowered Root from an "outperform" rating to a "market perform" rating in a research note on Friday. Jefferies Financial Group dropped their price target on Root from $84.00 to $72.00 and set a "buy" rating for the company in a research report on Wednesday, October 9th. Wells Fargo & Company upped their price objective on Root from $64.00 to $78.00 and gave the company an "equal weight" rating in a research report on Friday, November 1st. Finally, Keefe, Bruyette & Woods reaffirmed an "outperform" rating and set a $90.00 price objective (up previously from $82.00) on shares of Root in a research note on Tuesday, November 5th. Six investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Root presently has an average rating of "Hold" and a consensus price target of $59.13.

Root Price Performance

The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39. The stock has a market capitalization of $1.65 billion, a PE ratio of -88.80 and a beta of 2.34. The company has a 50-day moving average of $54.94 and a two-hundred day moving average of $54.05.

Root (NASDAQ:ROOT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate of ($0.61) by $1.96. The firm had revenue of $305.70 million during the quarter, compared to analyst estimates of $272.77 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. Root's revenue for the quarter was up 165.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($3.16) earnings per share. Sell-side analysts predict that Root, Inc. will post -1.2 EPS for the current fiscal year.

Insider Buying and Selling at Root

In related news, Director Julie Szudarek sold 2,000 shares of Root stock in a transaction on Monday, November 18th. The shares were sold at an average price of $96.33, for a total transaction of $192,660.00. Following the transaction, the director now owns 15,003 shares in the company, valued at approximately $1,445,238.99. The trade was a 11.76 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, major shareholder Meyer Malka sold 75,839 shares of the firm's stock in a transaction dated Thursday, November 7th. The shares were sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the transaction, the insider now directly owns 43,107 shares in the company, valued at $3,500,719.47. This trade represents a 63.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 246,905 shares of company stock valued at $20,440,479. Company insiders own 11.71% of the company's stock.

Institutional Investors Weigh In On Root

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hood River Capital Management LLC acquired a new stake in shares of Root during the second quarter valued at about $9,547,000. Driehaus Capital Management LLC acquired a new stake in Root during the 2nd quarter valued at approximately $9,154,000. State Street Corp increased its holdings in Root by 0.3% during the 3rd quarter. State Street Corp now owns 176,891 shares of the company's stock worth $6,683,000 after purchasing an additional 444 shares during the last quarter. Tidal Investments LLC acquired a new position in shares of Root in the 1st quarter valued at approximately $1,997,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Root in the second quarter worth $1,280,000. Hedge funds and other institutional investors own 59.82% of the company's stock.

Root Company Profile

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.