Root (NASDAQ:ROOT) Shares Gap Up - Time to Buy?

Shares of Root, Inc. (NASDAQ:ROOT - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $160.26, but opened at $168.42. Root shares last traded at $174.77, with a volume of 202,548 shares.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. UBS Group increased their price objective on shares of Root from $67.00 to $130.00 and gave the company a "neutral" rating in a research report on Friday, March 7th. Wells Fargo & Company restated a "buy" rating on shares of Root in a research note on Sunday, March 2nd. Finally, Scotiabank restated a "sector perform" rating on shares of Root in a research note on Sunday, March 2nd. Five equities research 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 company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $88.33.

Root Price Performance

The company has a market capitalization of $2.16 billion, a PE ratio of -117.50 and a beta of 2.48. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65. The firm's 50 day simple moving average is $120.39 and its 200 day simple moving average is $84.58.

Root (NASDAQ:ROOT - Get Free Report) last issued its quarterly earnings results on Wednesday, February 26th. The company reported $1.30 EPS for the quarter, beating the consensus estimate 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 company had revenue of $326.70 million for the quarter, compared to the consensus estimate of $287.79 million. As a group, research analysts anticipate that Root, Inc. will post -0.08 EPS for the current fiscal year.

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Insider Transactions at Root

In related news, Director Doug Ulman sold 2,000 shares of the company's stock in a transaction on Monday, March 24th. The stock was sold at an average price of $175.00, for a total transaction of $350,000.00. Following the completion of the sale, the director now directly owns 6,201 shares in the company, valued at $1,085,175. This represents a 24.39 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 11.71% of the company's stock.

Hedge Funds Weigh In On Root

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. FMR LLC raised its stake in shares of Root by 966.2% during the 3rd quarter. FMR LLC now owns 18,040 shares of the company's stock worth $682,000 after acquiring an additional 16,348 shares in the last quarter. Barclays PLC boosted its position in shares of Root by 361.6% in the 3rd quarter. Barclays PLC now owns 14,033 shares of the company's stock worth $529,000 after purchasing an additional 10,993 shares in the last quarter. Nordea Investment Management AB grew its stake in Root by 7.3% during the 4th quarter. Nordea Investment Management AB now owns 20,697 shares of the company's stock worth $1,497,000 after buying an additional 1,416 shares during the last quarter. Franklin Resources Inc. acquired a new position in Root during the 3rd quarter valued at about $249,000. Finally, Point72 Asset Management L.P. purchased a new stake in Root in the third quarter valued at about $428,000. Hedge funds and other institutional investors own 59.82% of the company's stock.

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.