Root, Inc. (NASDAQ:ROOT) Stock Rated "Hold" by Wall Street Brokerages

Key Points

• Analysts have a consensus “Hold” rating on Root, with five holds, one sell and one buy among seven covering firms. Their average 12-month price target is $57.75.
• Root reported quarterly EPS of $0.86, beating the $0.63 consensus estimate, while revenue of $381.3 million fell short of the $384.43 million estimate.
• Recent analyst actions were mixed: Wells Fargo raised its target to $53 and kept an equal-weight rating, while KBW cut its target to $70 but maintained an outperform rating; Jefferies lowered its rating to hold and its target to $58.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has received a consensus rating of "Hold" from the seven research firms that are presently covering the company, Marketbeat Ratings reports. One investment 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 price objective among analysts that have issued a report on the stock in the last year is $57.75.

ROOT has been the topic of several research analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Root in a research note on Monday, October 26th. TD Cowen downgraded shares of Root from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 20th. Wells Fargo & Company boosted their price target on shares of Root from $47.00 to $53.00 and gave the company an "equal weight" rating in a report on Thursday, November 5th. Keefe, Bruyette & Woods cut their target price on Root from $75.00 to $70.00 and set an "outperform" rating on the stock in a research note on Thursday, November 5th. Finally, Jefferies Financial Group lowered Root from a "buy" rating to a "hold" rating and decreased their price target for the company from $78.00 to $58.00 in a research note on Tuesday, August 11th.

Root Trading Up 0.3%

Shares of Root stock opened at $43.52 on Tuesday. Root has a 1 year low of $40.91 and a 1 year high of $91.00. 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 $674.12 million, a P/E ratio of 9.16 and a beta of 3.06. The company's fifty day moving average is $50.63 and its two-hundred day moving average is $53.78.

Root (NASDAQ:ROOT - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $0.86 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.23. The firm had revenue of $381.30 million during the quarter, compared to the consensus estimate of $384.43 million. Root had a net margin of 5.03% and a return on equity of 25.10%. Analysts forecast that Root will post 4.46 earnings per share for the current year.

Hedge Funds Weigh In On Root

Institutional investors and hedge funds have recently modified their holdings of the stock. Quantinno Capital Management LP bought a new position in Root in the 1st quarter worth approximately $920,000. Zweig DiMenna Associates LLC bought a new position in shares of Root in the first quarter valued at approximately $1,193,000. First Trust Advisors LP raised its position in Root by 49.1% in the 1st quarter. First Trust Advisors LP now owns 68,050 shares of the company's stock valued at $3,006,000 after purchasing an additional 22,422 shares during the last quarter. State of Wyoming acquired a new position in shares of Root during the third quarter worth approximately $289,000. Finally, Sequoia Financial Advisors LLC bought a new position in Root in the 2nd quarter valued at $219,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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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