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

Root, Inc. (NASDAQ:ROOT)’s stock price gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $151.11, but opened at $146.29. Root shares last traded at $145.06, with a volume of 212,584 shares changing hands.

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

Analysts Set New Price Targets

A number of equities research analysts have issued reports on ROOT shares. 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 report on Friday, March 7th. Scotiabank reiterated a “sector perform” rating on shares of Root in a research report on Sunday, March 2nd. Finally, Wells Fargo & Company reaffirmed a “buy” rating on shares of Root in a research note on Sunday, March 2nd. Five research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $88.33.

Root Price Performance

The stock’s 50 day simple moving average is $121.42 and its 200 day simple moving average is $85.27. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The firm has a market capitalization of $2.08 billion, a P/E ratio of -111.33 and a beta of 2.48.

Root (NASDAQ:ROOT) last released its quarterly earnings data on Wednesday, February 26th. The company reported $1.30 EPS for the quarter, topping the consensus estimate of ($0.63) by $1.93. The company had revenue of $326.70 million for the quarter, compared to the consensus estimate of $287.79 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. As a group, analysts expect that Root, Inc. will post -0.08 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Root

A number of hedge funds and other institutional investors have recently modified their holdings of ROOT. T. Rowe Price Investment Management Inc. purchased a new position in shares of Root in the 4th quarter valued at $29,661,000. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of Root by 163.2% in the 4th quarter. Connor Clark & Lunn Investment Management Ltd. now owns 127,923 shares of the company’s stock worth $9,286,000 after purchasing an additional 79,317 shares in the last quarter. Renaissance Technologies LLC grew its stake in Root by 41.8% during the 4th quarter. Renaissance Technologies LLC now owns 263,515 shares of the company’s stock worth $19,129,000 after buying an additional 77,699 shares during the last quarter. Vanguard Group Inc. increased its position in Root by 16.2% during the 4th 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. Finally, BNP Paribas Financial Markets purchased a new stake in Root in the fourth quarter valued at about $3,834,000. 59.82% of the stock is currently owned by institutional investors.

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.