Root (NASDAQ:ROOT) Stock Price Down 4.3% on Analyst Downgrade

Root, Inc. (NASDAQ:ROOT) shares were down 4.3% during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $71.00 to $64.00. Wells Fargo & Company currently has an equal weight rating on the stock. Root traded as low as $42.58 and last traded at $42.58. Approximately 177,367 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 474,033 shares. The stock had previously closed at $44.50.

Several other research firms also recently commented on ROOT. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $82.00 price objective (down from $88.00) on shares of Root in a report on Friday, August 16th. Jefferies Financial Group cut their price target on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a report on Wednesday. Cantor Fitzgerald raised shares of Root to a “strong-buy” rating in a report on Thursday, October 3rd. Finally, UBS Group cut their price target on shares of Root from $71.00 to $61.00 and set a “neutral” rating for the company in a report on Tuesday, August 13th. Four research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $55.63.

Institutional Trading of Root

Several institutional investors and hedge funds have recently made changes to their positions in ROOT. Sequoia Financial Advisors LLC purchased a new position in Root in the 1st quarter worth $293,000. Algert Global LLC purchased a new position in Root in the 2nd quarter worth $288,000. Vanguard Personalized Indexing Management LLC raised its position in Root by 76.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after purchasing an additional 2,576 shares during the period. Quantbot Technologies LP purchased a new position in Root in the 1st quarter worth $431,000. Finally, Price T Rowe Associates Inc. MD purchased a new position in Root in the 1st quarter worth $434,000. Hedge funds and other institutional investors own 59.82% of the company’s stock.

Root Stock Performance

The company has a market cap of $641.10 million, a PE ratio of -7.45 and a beta of 2.53. The business’s 50-day moving average is $42.34 and its 200 day moving average is $53.72. The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.43 and a current ratio of 1.43.

Root (NASDAQ:ROOT) last issued its earnings results on Wednesday, August 7th. The company reported ($0.52) EPS for the quarter, topping analysts’ consensus estimates of ($1.74) by $1.22. Root had a negative net margin of 9.81% and a negative return on equity of 50.80%. The company had revenue of $289.20 million for the quarter, compared to analysts’ expectations of $264.80 million. During the same quarter last year, the company earned ($2.55) EPS. The firm’s revenue was up 286.6% compared to the same quarter last year. On average, equities research analysts predict that Root, Inc. will post -2.13 EPS for the current fiscal year.

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.