Root (NASDAQ:ROOT) Shares Down 7.9% Following Insider Selling

Shares of Root, Inc. (NASDAQ:ROOT) fell 7.9% on Wednesday following insider selling activity. The stock traded as low as $162.58 and last traded at $155.16. 115,044 shares were traded during trading, a decline of 77% from the average session volume of 506,422 shares. The stock had previously closed at $168.56.

Specifically, Director Doug Ulman sold 2,000 shares of the firm’s stock in a transaction on Monday, March 24th. The stock was sold at an average price of $175.00, for a total value of $350,000.00. Following the completion of the transaction, the director now owns 6,201 shares in the company, valued at $1,085,175. This trade represents a 24.39 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link.

Wall Street Analyst Weigh In

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

Root Stock Performance

The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.65. The firm’s fifty day moving average price is $120.39 and its two-hundred day moving average price is $84.58. The stock has a market capitalization of $2.26 billion, a PE ratio of -121.09 and a beta of 2.48.

Root (NASDAQ:ROOT) last released its quarterly earnings data on Wednesday, February 26th. The company reported $1.30 earnings per share for the quarter, beating 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 company had revenue of $326.70 million during the quarter, compared to analysts’ expectations of $287.79 million. As a group, equities research analysts forecast that Root, Inc. will post -0.08 EPS for the current year.

Hedge Funds Weigh In On Root

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