Root (NASDAQ:ROOT) Trading Up 3.5% – What’s Next?

by · The Markets Daily

Root, Inc. (NASDAQ:ROOT – Get Free Report) shares were up 3.5% during trading on Thursday . The company traded as high as $39.52 and last traded at $39.52. Approximately 137,555 shares changed hands during trading, a decline of 71% from the average daily volume of 472,565 shares. The stock had previously closed at $38.20.

Wall Street Analysts Forecast Growth

ROOT has been the subject of several research reports. Cantor Fitzgerald upgraded shares of Root to a “strong-buy” rating in a research report on Thursday, October 3rd. UBS Group cut their target price on shares of Root from $71.00 to $61.00 and set a “neutral” rating for the company in a research report on Tuesday, August 13th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $82.00 price target (down from $88.00) on shares of Root in a research note on Friday, August 16th. Jefferies Financial Group lowered their price objective on shares of Root from $84.00 to $72.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Wells Fargo & Company lowered their price objective on shares of Root from $71.00 to $64.00 and set an “equal weight” rating for the company in a research note on Thursday. Four investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $55.63.

Read Our Latest Report on ROOT

Root Stock Down 4.0 %

The stock has a market capitalization of $641.10 million, a P/E ratio of -7.45 and a beta of 2.53. The company’s 50-day moving average price is $42.34 and its 200 day moving average price is $53.76. The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.43 and a current ratio of 1.43.

Root (NASDAQ:ROOT – Get Free Report) last posted its earnings results on Wednesday, August 7th. The company reported ($0.52) earnings per share for the quarter, beating the consensus estimate of ($1.74) by $1.22. The company had revenue of $289.20 million during the quarter, compared to analysts’ expectations of $264.80 million. Root had a negative net margin of 9.81% and a negative return on equity of 50.80%. Root’s quarterly revenue was up 286.6% on a year-over-year basis. During the same period last year, the company posted ($2.55) earnings per share. As a group, equities analysts expect that Root, Inc. will post -2.13 earnings per share for the current year.

Hedge Funds Weigh In On Root

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Sequoia Financial Advisors LLC purchased a new position in shares of Root during the 1st quarter worth about $293,000. Algert Global LLC bought a new stake in Root during the 2nd quarter valued at about $288,000. Vanguard Personalized Indexing Management LLC lifted its holdings in Root by 76.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock valued at $306,000 after buying an additional 2,576 shares in the last quarter. Quantbot Technologies LP bought a new stake in Root during the 1st quarter valued at about $431,000. Finally, Price T Rowe Associates Inc. MD bought a new stake in Root during the 1st quarter valued at about $434,000. 59.82% of the stock is owned by hedge funds and other institutional investors.

Root Company Profile

(Get Free Report)

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.

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