Root (NASDAQ:ROOT) Shares Gap Down After Insider Selling

Root, Inc. (NASDAQ:ROOT)’s stock price gapped down prior to trading on Tuesday following insider selling activity. The stock had previously closed at $45.61, but opened at $43.84. Root shares last traded at $45.23, with a volume of 7,916 shares trading hands.

Specifically, Director Beth A. Birnbaum sold 1,735 shares of the stock in a transaction that occurred on Thursday, June 13th. The shares were sold at an average price of $43.67, for a total transaction of $75,767.45. Following the completion of the sale, the director now owns 16,013 shares of the company’s stock, valued at $699,287.71. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, major shareholder Meyer Malka sold 13,300 shares of the stock in a transaction that occurred on Thursday, May 2nd. The shares were sold at an average price of $60.58, for a total value of $805,714.00. Following the completion of the transaction, the insider now directly owns 43,107 shares of the company’s stock, valued at approximately $2,611,422.06. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Beth A. Birnbaum sold 1,735 shares of the business’s stock in a transaction that occurred on Thursday, June 13th. The stock was sold at an average price of $43.67, for a total transaction of $75,767.45. Following the sale, the director now directly owns 16,013 shares in the company, valued at approximately $699,287.71. The disclosure for this sale can be found here. 11.71% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on ROOT shares. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $80.00 price objective (up from $70.00) on shares of Root in a report on Tuesday, May 7th. Jefferies Financial Group raised shares of Root from a “hold” rating to a “buy” rating and raised their target price for the stock from $10.00 to $40.00 in a report on Friday, March 1st. TD Cowen increased their price target on Root from $11.00 to $51.00 and gave the stock a “hold” rating in a research report on Wednesday, June 5th. Citigroup boosted their price objective on Root from $11.00 to $12.00 and gave the company a “neutral” rating in a report on Friday, February 23rd. Finally, JMP Securities raised their target price on Root from $15.00 to $90.00 and gave the stock a “market outperform” rating in a report on Wednesday, May 1st. Five investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $41.89.

Root Stock Performance

The company has a current ratio of 1.51, a quick ratio of 1.51 and a debt-to-equity ratio of 1.81. The company has a market cap of $652.32 million, a PE ratio of -5.88 and a beta of 2.59. The firm’s fifty day moving average is $58.16 and its 200 day moving average is $35.79.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Tuesday, April 30th. The company reported ($0.42) earnings per share for the quarter, beating analysts’ consensus estimates of ($2.51) by $2.09. Root had a negative net margin of 17.61% and a negative return on equity of 62.36%. The firm had revenue of $254.90 million for the quarter, compared to analyst estimates of $203.99 million. During the same period last year, the company posted ($2.88) EPS. Root’s quarterly revenue was up 263.6% compared to the same quarter last year. As a group, research analysts predict that Root, Inc. will post -4.81 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROOT. Citigroup Inc. lifted its stake in shares of Root by 218,250.0% in the third quarter. Citigroup Inc. now owns 4,367 shares of the company’s stock worth $42,000 after buying an additional 4,365 shares in the last quarter. Sequoia Financial Advisors LLC purchased a new position in Root in the 1st quarter worth approximately $293,000. Quantbot Technologies LP purchased a new position in Root in the 1st quarter worth approximately $431,000. Price T Rowe Associates Inc. MD purchased a new stake in shares of Root in the first quarter valued at approximately $434,000. Finally, HST Ventures LLC increased its holdings in shares of Root by 21.9% in the fourth quarter. HST Ventures LLC now owns 51,890 shares of the company’s stock valued at $544,000 after purchasing an additional 9,317 shares during the last quarter. 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.