Root, Inc. (NASDAQ:ROOT) Receives Average Rating of "Hold" from Analysts

Key Points

• Root has a consensus “Hold” rating from seven analysts: five holds, one sell, and one buy. The average 12-month price target is $62.25.
• Analyst sentiment has generally weakened, with Jefferies cutting its rating to “Hold” and target to $58, while TD Cowen downgraded the stock to “Strong Sell.” Keefe, Bruyette & Woods also reduced its target from $95 to $80.
• Root reported quarterly EPS of $1.49, exceeding the $0.83 consensus estimate, while revenue of $389.2 million fell slightly short of expectations. Institutional investors own approximately 59.82% of the company.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has been assigned a consensus rating of "Hold" from the seven brokerages 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 twelve-month target price among analysts that have issued ratings on the stock in the last year is $62.25.

A number of research firms have recently commented on ROOT. Weiss Ratings upgraded shares of Root from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. Keefe, Bruyette & Woods lowered their price objective 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. Zacks Research raised Root from a "strong sell" rating to a "hold" rating in a report on Monday, June 8th. TD Cowen downgraded Root from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 20th. Finally, Jefferies Financial Group cut shares of Root from a "buy" rating to a "hold" rating and decreased their target price for the stock from $78.00 to $58.00 in a research note on Tuesday, August 11th.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Sequoia Financial Advisors LLC purchased a new stake in Root during the 2nd quarter valued at approximately $219,000. Prosperitas Financial LLC raised its position in shares of Root by 4.4% during the 2nd quarter. Prosperitas Financial LLC now owns 27,411 shares of the company's stock valued at $1,533,000 after buying an additional 1,149 shares in the last quarter. CoreCap Advisors LLC bought a new stake in shares of Root in the 2nd quarter valued at approximately $42,000. Quantinno Capital Management LP bought a new stake in Root in the first quarter worth $920,000. Finally, First Trust Advisors LP boosted its stake in shares of Root by 49.1% during the 1st quarter. First Trust Advisors LP now owns 68,050 shares of the company's stock worth $3,006,000 after purchasing an additional 22,422 shares during the period. Institutional investors own 59.82% of the company's stock.

Root Stock Performance

Shares of ROOT stock opened at $49.84 on Monday. Root has a 12 month low of $40.91 and a 12 month high of $104.47. The company's fifty day moving average price is $55.57 and its 200-day moving average price is $53.51. The stock has a market cap of $772.02 million, a PE ratio of 14.08 and a beta of 2.92. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 0.60.

Root (NASDAQ:ROOT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.49 EPS for the quarter, topping analysts' consensus estimates of $0.83 by $0.66. Root had a return on equity of 19.72% and a net margin of 3.78%.The firm had revenue of $389.20 million for the quarter, compared to analysts' expectations of $395.14 million. During the same period in the previous year, the firm posted $1.29 EPS. The business's revenue for the quarter was up 1.6% compared to the same quarter last year. On average, equities analysts expect that Root will post 4.46 EPS for the current fiscal year.

Root Company Profile

Root, Inc is a technology-driven insurance company that primarily provides personal automobile insurance in the United States. The company uses a mobile application, data analytics and telematics to evaluate driving behavior and help determine individualized insurance pricing. Customers can use the app to obtain quotes, manage policies, access identification cards and file claims.

Root's insurance products are designed around a digital, direct-to-consumer model intended to simplify the purchase and management of coverage.

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