Root (NASDAQ:ROOT) Shares Gap Down – What’s Next?

Shares of Root, Inc. (NASDAQ:ROOT) gapped down before the market opened on Thursday. The stock had previously closed at $57.15, but opened at $48.11. Root shares last traded at $51.7660, with a volume of 54,106 shares traded.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ROOT. Wells Fargo & Company lifted their price target on shares of Root from $47.00 to $53.00 and gave the company an “equal weight” rating in a research note on Thursday. TD Cowen downgraded Root from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 20th. Jefferies Financial Group downgraded Root from a “buy” rating to a “hold” rating and reduced their target price for the company from $78.00 to $58.00 in a research note on Tuesday, August 11th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a research report on Monday, October 26th. Finally, Keefe, Bruyette & Woods cut their price target on Root from $95.00 to $80.00 and set an “outperform” rating on the stock in a report on Thursday, August 6th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $60.25.

Root Price Performance

The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market cap of $705.26 million, a P/E ratio of 12.78 and a beta of 3.06. The company has a fifty day moving average of $51.36 and a 200-day moving average of $54.15.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, November 4th. The company reported $0.86 EPS for the quarter, beating the consensus estimate of $0.63 by $0.23. Root had a net margin of 3.78% and a return on equity of 19.72%. The firm had revenue of $381.30 million during the quarter, compared to analyst estimates of $384.43 million. On average, sell-side analysts anticipate that Root, Inc. will post 4.46 EPS for the current fiscal year.

Institutional Trading of Root

A number of institutional investors and hedge funds have recently modified their holdings of ROOT. CoreCap Advisors LLC bought a new stake in Root during the second quarter worth $42,000. Sequoia Financial Advisors LLC purchased a new position in Root in the second quarter worth $219,000. State of Wyoming bought a new position in Root in the 3rd quarter valued at $289,000. Quantinno Capital Management LP bought a new position in Root in the 1st quarter valued at $920,000. Finally, Zweig DiMenna Associates LLC bought a new position in Root in the 1st quarter valued at $1,193,000. 59.82% of the stock is owned by hedge funds and other institutional investors.

About Root

Root, Inc (NASDAQ:ROOT) is an insurance technology company that uses mobile technology and data-driven underwriting to provide personal insurance products. The company is best known for its automobile insurance, which is offered through a digital platform designed to allow customers to obtain quotes, purchase coverage and manage policies through a smartphone.

Root’s auto insurance model uses information collected through its mobile application, including driving-related data, to evaluate individual driving behavior and help determine eligibility and pricing.