Root, Inc. (NASDAQ:ROOT) Stock Now Rated "Hold" by Sell-Side Brokerages

Key Points

• Root has a consensus “Hold” rating from seven brokerages, with five holds, one sell and one buy. The average 12-month price target is $58.75, although recent analyst actions included downgrades and target-price cuts.
• Institutional investors and hedge funds own approximately 59.82% of Root’s shares, with several firms recently initiating or increasing positions.
• Root’s latest quarterly results exceeded expectations on earnings, reporting $1.49 EPS versus an $0.83 consensus estimate, while revenue of $389.2 million fell slightly short of forecasts but increased 1.6% year over year.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has been given an average rating of "Hold" by the seven brokerages that are currently covering the stock, MarketBeat reports. One 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 price target among brokers that have issued a report on the stock in the last year is $58.75.

Several brokerages recently issued reports on ROOT. Wells Fargo & Company reissued a "cautious" rating on shares of Root in a research note on Monday. Weiss Ratings raised Root from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, July 28th. Keefe, Bruyette & Woods decreased their target price on Root from $95.00 to $80.00 and set an "outperform" rating for the company in a research report on Thursday, August 6th. TD Cowen downgraded shares of Root from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 20th. Finally, Jefferies Financial Group lowered Root from a "buy" rating to a "hold" rating and lowered their target price for the stock from $78.00 to $58.00 in a report on Tuesday, August 11th.

Hedge Funds Weigh In On Root

A number of large investors have recently made changes to their positions in ROOT. Sequoia Financial Advisors LLC purchased a new stake in shares of Root during the second quarter valued at $219,000. Prosperitas Financial LLC raised its stake in shares of Root by 4.4% in the second quarter. Prosperitas Financial LLC now owns 27,411 shares of the company's stock worth $1,533,000 after purchasing an additional 1,149 shares during the last quarter. CoreCap Advisors LLC purchased a new position in shares of Root in the second quarter worth about $42,000. Quantinno Capital Management LP purchased a new stake in Root in the first quarter valued at approximately $920,000. Finally, First Trust Advisors LP boosted its position in Root by 49.1% in the first quarter. First Trust Advisors LP now owns 68,050 shares of the company's stock valued at $3,006,000 after buying an additional 22,422 shares during the last quarter. 59.82% of the stock is owned by institutional investors and hedge funds.

Root Stock Performance

Root stock opened at $50.53 on Friday. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.02. Root has a 1-year low of $40.91 and a 1-year high of $91.00. The firm has a market capitalization of $782.71 million, a P/E ratio of 14.27 and a beta of 2.91. The company's 50-day moving average is $51.56 and its 200 day moving average is $53.75.

Root (NASDAQ:ROOT - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.66. Root had a net margin of 3.78% and a return on equity of 19.72%. The business had revenue of $389.20 million during the quarter, compared to the consensus estimate of $395.14 million. During the same quarter last year, the firm earned $1.29 earnings per share. The firm's quarterly revenue was up 1.6% compared to the same quarter last year. Research analysts forecast that Root will post 4.46 EPS for the current year.

About Root

Root, Inc NASDAQ: ROOT is a technology-driven insurance company that provides primarily personal automobile insurance. Its platform uses mobile technology and telematics, including driving data collected through a smartphone application, to assess driving behavior and help determine personalized insurance pricing.

Customers can obtain quotes, manage policies, submit claims and access insurance documents through Root's mobile app and online platform. The company's product offering has centered on usage-based auto insurance, with coverage and availability varying by state and applicable regulatory requirements.

Root was founded in 2015 by Alex Timm and Dan Mayer and is headquartered in Columbus, Ohio.

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