Root (NASDAQ:ROOT) Lowered to Hold Rating by Wall Street Zen

Root (NASDAQ:ROOT) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

A number of other research analysts also recently issued reports on ROOT. Scotiabank restated a “sector perform” rating on shares of Root in a research report on Sunday, March 2nd. Jefferies Financial Group boosted their target price on shares of Root from $115.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, April 11th. Keefe, Bruyette & Woods boosted their target price on shares of Root from $150.00 to $170.00 and gave the company an “outperform” rating in a research report on Thursday, May 8th. UBS Group boosted 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. Finally, Wells Fargo & Company boosted their target price on shares of Root from $105.00 to $142.00 and gave the company an “equal weight” rating in a research report on Thursday, May 8th. Six equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Root currently has an average rating of “Hold” and a consensus target price of $136.40.

Root Stock Down 5.7%

Shares of NASDAQ ROOT opened at $146.69 on Friday. The company has a market capitalization of $2.25 billion, a P/E ratio of -119.26 and a beta of 2.31. Root has a 52-week low of $34.04 and a 52-week high of $181.14. 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 company’s 50 day moving average price is $137.19 and its 200-day moving average price is $116.36.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.62. The firm had revenue of $349.40 million for the quarter, compared to the consensus estimate of $305.24 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The company’s revenue for the quarter was up 37.2% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.42) EPS. Equities analysts forecast that Root will post -0.08 earnings per share for the current year.

Insider Activity at Root

In other Root news, Director Doug Ulman sold 2,000 shares of the company’s stock in a transaction on Monday, March 24th. The shares were sold at an average price of $175.00, for a total transaction of $350,000.00. Following the transaction, the director now owns 6,201 shares in the company, valued at approximately $1,085,175. This represents a 24.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Meyer Malka sold 225,000 shares of the company’s stock in a transaction on Wednesday, April 30th. The stock was sold at an average price of $135.81, for a total transaction of $30,557,250.00. Following the transaction, the insider now owns 503,800 shares in the company, valued at approximately $68,421,078. The trade was a 30.87% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 254,742 shares of company stock worth $34,553,788 in the last quarter. Company insiders own 11.76% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Root by 3.6% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,912 shares of the company’s stock valued at $357,000 after purchasing an additional 171 shares during the last quarter. MetLife Investment Management LLC raised its holdings in shares of Root by 5.0% in the fourth quarter. MetLife Investment Management LLC now owns 5,382 shares of the company’s stock valued at $391,000 after purchasing an additional 255 shares during the last quarter. Legal & General Group Plc raised its holdings in shares of Root by 3.6% in the fourth quarter. Legal & General Group Plc now owns 7,955 shares of the company’s stock valued at $577,000 after purchasing an additional 273 shares during the last quarter. Twin Tree Management LP purchased a new stake in shares of Root in the first quarter valued at about $37,000. Finally, KBC Group NV purchased a new stake in shares of Root in the first quarter valued at about $48,000. Institutional investors and hedge funds 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.