Root (NASDAQ:ROOT) Sees Large Volume Increase Following Strong Earnings

Root, Inc. (NASDAQ:ROOT) shares saw unusually-high trading volume on Thursday following a stronger than expected earnings report. Approximately 600,383 shares were traded during trading, an increase of 18% from the previous session’s volume of 508,929 shares.The stock last traded at $138.35 and had previously closed at $139.93.

The company reported $1.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.62. The business had revenue of $349.40 million during the quarter, compared to the consensus estimate of $305.24 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The firm’s quarterly revenue was up 37.2% on a year-over-year basis. During the same period in the previous year, the company posted ($0.42) EPS.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. UBS Group raised their target price on shares of Root from $67.00 to $130.00 and gave the company a “neutral” rating in a research report on Friday, March 7th. Jefferies Financial Group upped their target price on Root from $115.00 to $150.00 and gave the stock a “buy” rating in a report on Friday, April 11th. Keefe, Bruyette & Woods boosted their price target on Root from $150.00 to $170.00 and gave the stock an “outperform” rating in a report on Thursday. Scotiabank reiterated a “sector perform” rating on shares of Root in a report on Sunday, March 2nd. Finally, Wells Fargo & Company boosted their target price on shares of Root from $105.00 to $142.00 and gave the stock an “equal weight” rating in a report on Thursday. Six investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $122.17.

Insider Activity

In related news, major shareholder Meyer Malka sold 225,000 shares of the company’s stock in a transaction that occurred on Wednesday, April 30th. The shares were sold at an average price of $135.81, for a total value of $30,557,250.00. Following the transaction, the insider now directly owns 503,800 shares in the company, valued at approximately $68,421,078. This represents a 30.87 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Doug Ulman sold 2,000 shares of Root stock in a transaction on 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 represents a 24.39 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 233,659 shares of company stock valued at $31,748,719 in the last three months. Company insiders own 11.71% of the company’s stock.

Institutional Investors Weigh In On Root

A number of institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its holdings in shares of Root by 16.2% in the fourth quarter. Vanguard Group Inc. now owns 526,928 shares of the company’s stock worth $38,250,000 after purchasing an additional 73,413 shares during the last quarter. T. Rowe Price Investment Management Inc. purchased a new stake in shares of Root in the fourth quarter worth $29,661,000. Renaissance Technologies LLC raised its holdings in Root by 41.8% in the fourth 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. Connor Clark & Lunn Investment Management Ltd. raised its holdings in 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 acquiring an additional 79,317 shares during the last quarter. Finally, Northern Trust Corp lifted its holdings in shares of Root by 6.5% during the fourth quarter. Northern Trust Corp now owns 75,159 shares of the company’s stock valued at $5,456,000 after purchasing an additional 4,607 shares in the last quarter. Hedge funds and other institutional investors own 59.82% of the company’s stock.

Root Stock Performance

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 stock has a market cap of $2.15 billion, a PE ratio of -115.03 and a beta of 2.40. The business’s fifty day moving average price is $137.05 and its 200-day moving average price is $104.58.

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.