Root (NASDAQ:ROOT) Trading 6.8% Higher – Here’s Why

Shares of Root, Inc. (NASDAQ:ROOT) shot up 6.8% during trading on Tuesday . The company traded as high as $139.00 and last traded at $136.67. 121,935 shares were traded during mid-day trading, a decline of 76% from the average session volume of 505,972 shares. The stock had previously closed at $127.91.

Analyst Ratings Changes

Several research analysts have commented on the company. Scotiabank restated a “sector perform” rating on shares of Root in a report on Sunday, March 2nd. Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. UBS Group upped their target price on Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a report on Friday. Wells Fargo & Company reissued a “buy” rating on shares of Root in a research report on Sunday, March 2nd. Finally, JMP Securities downgraded Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Five investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $88.33.

Root Trading Up 7.1 %

The company has a 50 day simple moving average of $101.24 and a two-hundred day simple moving average of $75.13. 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 firm has a market cap of $2.08 billion, a PE ratio of -111.34 and a beta of 2.48.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, February 26th. The company reported $1.30 earnings per share for the quarter, topping the consensus estimate of ($0.63) by $1.93. The company had revenue of $326.70 million for the quarter, compared to the consensus estimate of $287.79 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. Analysts expect that Root, Inc. will post -0.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. boosted its holdings in shares of Root by 651.8% during the 4th quarter. Russell Investments Group Ltd. now owns 421 shares of the company’s stock worth $31,000 after purchasing an additional 365 shares during the last quarter. Point72 DIFC Ltd purchased a new stake in Root in the 3rd quarter valued at $33,000. KLP Kapitalforvaltning AS acquired a new position in shares of Root during the 4th quarter valued at about $94,000. Aquatic Capital Management LLC increased its position in Root by 92.1% during the fourth quarter. Aquatic Capital Management LLC now owns 1,537 shares of the company’s stock worth $112,000 after purchasing an additional 737 shares during the last quarter. Finally, SBI Securities Co. Ltd. purchased a new position in Root during the fourth quarter worth about $154,000. 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.