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

Root, Inc. (NASDAQ:ROOT)’s stock price gapped down before the market opened on Tuesday after an insider sold shares in the company. 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.

Specifically, Director Beth A. Birnbaum sold 1,735 shares of the firm’s stock in a transaction on Thursday, June 13th. The stock was sold at an average price of $43.67, for a total value 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Root news, major shareholder Meyer Malka sold 13,300 shares of the firm’s stock in a transaction dated 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 sale, the insider now directly owns 43,107 shares in the company, valued at $2,611,422.06. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Beth A. Birnbaum sold 1,735 shares of the stock in a transaction that occurred on Thursday, June 13th. The stock was sold at an average price of $43.67, for a total value of $75,767.45. Following the completion of the transaction, the director now directly owns 16,013 shares of the company’s stock, valued at approximately $699,287.71. The disclosure for this sale can be found here. Corporate insiders own 11.71% of the company’s stock.

Analyst Ratings Changes

ROOT has been the subject of several recent research reports. Wells Fargo & Company raised their price objective on Root from $64.00 to $78.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 1st. JMP Securities raised their target price on shares of Root from $15.00 to $90.00 and gave the company a “market outperform” rating in a research note on Wednesday, May 1st. Citigroup boosted their price target on Root from $11.00 to $12.00 and gave the stock a “neutral” rating in a research report on Friday, February 23rd. Jefferies Financial Group upgraded Root from a “hold” rating to a “buy” rating and lifted their price objective for the company from $10.00 to $40.00 in a research note on Friday, March 1st. Finally, Keefe, Bruyette & Woods restated an “outperform” rating and set a $80.00 price target (up from $70.00) on shares of Root in a report on Tuesday, May 7th. Five equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $41.89.

Root Price Performance

The company has a debt-to-equity ratio of 1.81, a current ratio of 1.51 and a quick ratio of 1.51. The business’s 50 day moving average price is $58.16 and its 200 day moving average price is $35.79. The stock has a market capitalization of $652.32 million, a P/E ratio of -5.88 and a beta of 2.59.

Root (NASDAQ:ROOT) last posted its earnings results on Tuesday, April 30th. The company reported ($0.42) EPS for the quarter, topping analysts’ consensus estimates of ($2.51) by $2.09. The business had revenue of $254.90 million during the quarter, compared to the consensus estimate of $203.99 million. Root had a negative net margin of 17.61% and a negative return on equity of 62.36%. The firm’s revenue was up 263.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($2.88) EPS. Sell-side analysts forecast that Root, Inc. will post -4.81 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Citigroup Inc. increased its position in shares of Root by 218,250.0% during the 3rd quarter. Citigroup Inc. now owns 4,367 shares of the company’s stock valued at $42,000 after purchasing an additional 4,365 shares during the last quarter. Sequoia Financial Advisors LLC bought a new stake in Root during the first quarter valued at approximately $293,000. Quantbot Technologies LP purchased a new stake in Root during the first quarter valued at approximately $431,000. Price T Rowe Associates Inc. MD purchased a new stake in Root during the first quarter valued at approximately $434,000. Finally, Barclays PLC raised its position in Root by 229,380.0% in the third quarter. Barclays PLC now owns 11,474 shares of the company’s stock worth $109,000 after acquiring an additional 11,469 shares during the period. Institutional investors 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.