Root (NASDAQ:ROOT) Price Target Raised to $53.00

Key Points

• Wells Fargo raised its price target for Root from $47 to $53 but maintained an “equal weight” rating; the new target implies 2.08% upside from the prior close.
• Analyst sentiment is mixed but averages to “Hold”: one analyst rates Root Buy, five Hold, and one Sell, with an average price target of $60.25.
• Root reported quarterly EPS of $0.86, beating the $0.63 consensus, while revenue of $381.3 million fell slightly short of expectations.

Root (NASDAQ:ROOT - Get Free Report) had its price objective increased by research analysts at Wells Fargo & Company from $47.00 to $53.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 2.08% from the company's previous close.

ROOT has been the topic of several other research reports. Weiss Ratings reissued a "hold (c)" rating on shares of Root in a research report on Monday, October 26th. Keefe, Bruyette & Woods dropped their price target on shares of Root from $95.00 to $80.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. TD Cowen downgraded shares of Root from a "hold" rating to a "strong sell" rating in a report on Thursday, August 20th. Finally, Jefferies Financial Group lowered shares of Root from a "buy" rating to a "hold" rating and reduced their price objective for the company from $78.00 to $58.00 in a research note on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $60.25.

Root Stock Down 9.1%

ROOT stock opened at $51.92 on Thursday. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.02 and a current ratio of 1.02. The company has a market capitalization of $804.26 million, a price-to-earnings ratio of 14.89 and a beta of 3.06. Root has a fifty-two week low of $40.91 and a fifty-two week high of $91.00. The stock has a fifty day moving average of $51.36 and a 200-day moving average of $54.15.

Root (NASDAQ:ROOT - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.23. The business had revenue of $381.30 million for the quarter, compared to analysts' expectations of $384.43 million. Root had a return on equity of 19.72% and a net margin of 3.78%. As a group, equities research analysts predict that Root will post 4.46 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ROOT. CoreCap Advisors LLC bought a new stake in Root during the 2nd quarter worth approximately $42,000. Sequoia Financial Advisors LLC bought a new position in Root in the 2nd quarter valued at $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 purchased a new position in shares of Root during the 1st quarter valued at $1,193,000. Hedge funds and other institutional investors own 59.82% of the company's stock.

Root Company Profile

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.

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