Root (NASDAQ:ROOT) Cut to Market Perform at JMP Securities

JMP Securities lowered shares of Root (NASDAQ:ROOT) from an outperform rating to a market perform rating in a report released on Friday, Marketbeat Ratings reports.

Several other brokerages have also issued reports on ROOT. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a research report on Thursday, October 3rd. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $90.00 target price (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Jefferies Financial Group reduced their price target on shares of Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research note on Wednesday, October 9th. Wells Fargo & Company boosted their price objective on shares of Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a research report on Friday, November 1st. Finally, UBS Group raised their target price on shares of Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research report on Monday, November 4th. Six investment analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, Root presently has a consensus rating of “Hold” and an average target price of $59.13.

Root Stock Performance

NASDAQ ROOT opened at $109.23 on Friday. The business’s 50 day moving average price is $54.94 and its 200-day moving average price is $53.99. Root has a fifty-two week low of $7.22 and a fifty-two week high of $118.15. The company has a market cap of $1.65 billion, a P/E ratio of -88.80 and a beta of 2.34. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share for the quarter, beating the consensus estimate of ($0.61) by $1.96. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The business had revenue of $305.70 million for the quarter, compared to the consensus estimate of $272.77 million. During the same quarter in the prior year, the firm posted ($3.16) earnings per share. The business’s revenue for the quarter was up 165.1% on a year-over-year basis. Sell-side analysts predict that Root will post -1.2 earnings per share for the current year.

Insider Activity

In other news, major shareholder Meyer Malka sold 75,839 shares of the business’s stock in a transaction on Thursday, November 7th. The stock was sold at an average price of $81.21, for a total value of $6,158,885.19. Following the completion of the transaction, the insider now directly owns 43,107 shares of the company’s stock, valued at approximately $3,500,719.47. The trade was a 63.76 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Julie Szudarek sold 2,000 shares of the firm’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $96.33, for a total value of $192,660.00. Following the sale, the director now directly owns 15,003 shares in the company, valued at approximately $1,445,238.99. The trade was a 11.76 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 246,905 shares of company stock worth $20,440,479. 11.71% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Root

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Point72 DIFC Ltd purchased a new stake in shares of Root during the 3rd quarter valued at $33,000. MetLife Investment Management LLC boosted its holdings in Root by 129.1% in the third quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock worth $194,000 after acquiring an additional 2,889 shares in the last quarter. Algert Global LLC purchased a new stake in shares of Root during the second quarter worth about $288,000. Versor Investments LP acquired a new position in shares of Root during the third quarter valued at about $216,000. Finally, Vanguard Personalized Indexing Management LLC raised its position in shares of Root by 76.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock valued at $306,000 after purchasing an additional 2,576 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.