Root, Inc. (NASDAQ:ROOT) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts collectively rate Root “Hold.” Of seven analysts, five recommend holding, while one rates the stock a sell and one a buy; the average 12-month price target is $62.25.
• Recent analyst actions have generally been cautious, with Jefferies cutting its rating to hold and lowering its target to $58, while Keefe, Bruyette & Woods reduced its target to $80 but maintained an outperform rating.
• Root reported quarterly EPS of $1.49, beating the $0.83 consensus estimate, although revenue of $389.2 million came in slightly below expectations. Institutional investors own 59.82% of the company, and the stock recently traded near $58.19.

Shares of Root, Inc. (NASDAQ:ROOT - Get Free Report) have earned an average rating of "Hold" from the seven research firms that are currently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and one has given a buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $62.25.

ROOT has been the topic of a number of research reports. Keefe, Bruyette & Woods dropped their price objective on Root from $95.00 to $80.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Zacks Research raised shares of Root from a "strong sell" rating to a "hold" rating in a report on Monday, June 8th. 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 report on Tuesday, August 11th. UBS Group set a $50.00 target price on shares of Root and gave the stock a "neutral" rating in a report on Monday, May 11th. Finally, Wells Fargo & Company increased their target price on shares of Root from $58.00 to $61.00 and gave the company an "equal weight" rating in a research note on Thursday, July 9th.

Institutional Investors Weigh In On Root

Large investors have recently modified their holdings of the stock. Gilder Gagnon Howe & Co. LLC boosted its holdings in shares of Root by 3.0% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company's stock worth $797,000 after purchasing an additional 181 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Root by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company's stock valued at $686,000 after buying an additional 229 shares during the period. Gabelli Funds LLC lifted its position in Root by 10.9% in the 3rd quarter. Gabelli Funds LLC now owns 5,100 shares of the company's stock worth $457,000 after buying an additional 500 shares in the last quarter. Swiss National Bank lifted its position in Root by 2.4% in the 4th quarter. Swiss National Bank now owns 21,500 shares of the company's stock worth $1,553,000 after buying an additional 500 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its position in Root by 511.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock worth $94,000 after buying an additional 614 shares in the last quarter. 59.82% of the stock is owned by institutional investors.

Root Price Performance

Shares of ROOT opened at $58.19 on Thursday. Root has a 52 week low of $40.91 and a 52 week high of $104.47. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.60. The firm has a market cap of $901.36 million, a price-to-earnings ratio of 16.44 and a beta of 2.89. The stock has a 50 day moving average of $56.94 and a 200-day moving average of $54.04.

Root (NASDAQ:ROOT - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $1.49 EPS for the quarter, beating the consensus estimate of $0.83 by $0.66. The company had revenue of $389.20 million during the quarter, compared to analyst estimates of $395.14 million. Root had a return on equity of 19.72% and a net margin of 3.78%.The business's revenue was up 1.6% compared to the same quarter last year. During the same period in the prior year, the company earned $1.29 earnings per share. As a group, analysts forecast that Root will post 3.28 EPS for the current year.

Root Company Profile

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company's core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.

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