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

Key Points

• Root, Inc. has received an average analyst rating of "Hold" from ten research firms, with a 12-month price target averaging around $123.83.
• Recent insider trades included CEO Alexander E. Timm selling 10,861 shares and insider Mahtiyar Bonakdarpour selling 5,750 shares, decreasing their ownership stakes by 6.44% and 2.05%, respectively.
• Root's shares are currently trading at $95.18, representing a 3.2% decline and reflecting a significant drop from its 12-month high of $181.14.

Shares of Root, Inc. (NASDAQ:ROOT - Get Free Report) have received an average recommendation of "Hold" from the ten research firms that are presently covering the stock, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $123.8333.

A number of analysts recently commented on ROOT shares. Keefe, Bruyette & Woods decreased their target price on Root from $170.00 to $165.00 and set an "outperform" rating for the company in a research report on Friday, August 8th. Wells Fargo & Company raised their price objective on Root from $118.00 to $120.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Zacks Research downgraded Root from a "strong-buy" rating to a "hold" rating in a report on Monday. TD Cowen upped their target price on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research report on Tuesday, July 8th. Finally, UBS Group reissued a "neutral" rating and issued a $105.00 price target (down previously from $140.00) on shares of Root in a research report on Monday, August 18th.

Insiders Place Their Bets

In other news, CEO Alexander E. Timm sold 10,861 shares of Root stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total transaction of $965,325.68. Following the completion of the transaction, the chief executive officer directly owned 157,748 shares in the company, valued at $14,020,642.24. This trade represents a 6.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $89.74, for a total transaction of $516,005.00. Following the sale, the insider directly owned 274,226 shares of the company's stock, valued at approximately $24,609,041.24. The trade was a 2.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. 11.76% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Root

A number of hedge funds have recently bought and sold shares of ROOT. Dimensional Fund Advisors LP raised its holdings in shares of Root by 241.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 40,150 shares of the company's stock valued at $2,915,000 after purchasing an additional 28,386 shares during the last quarter. Price T Rowe Associates Inc. MD purchased a new position in Root during the fourth quarter worth about $417,000. The Manufacturers Life Insurance Company bought a new stake in Root in the 4th quarter worth about $231,000. Northern Trust Corp increased its stake in Root by 6.5% in the 4th quarter. Northern Trust Corp now owns 75,159 shares of the company's stock valued at $5,456,000 after buying an additional 4,607 shares during the last quarter. Finally, BNP Paribas Financial Markets purchased a new stake in Root in the 4th quarter valued at about $3,834,000. 59.82% of the stock is owned by hedge funds and other institutional investors.

Root Stock Down 3.2%

Shares of NASDAQ ROOT opened at $95.18 on Thursday. The firm has a market cap of $1.47 billion, a PE ratio of 19.00 and a beta of 2.24. Root has a 12-month low of $34.04 and a 12-month high of $181.14. The company's fifty day simple moving average is $106.37 and its 200 day simple moving average is $125.47. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.82.

Root (NASDAQ:ROOT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $1.29 earnings per share for the quarter, beating the consensus estimate of $1.06 by $0.23. The firm had revenue of $382.90 million during the quarter, compared to the consensus estimate of $348.36 million. Root had a net margin of 6.02% and a return on equity of 38.24%. The business's revenue was up 32.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.52) earnings per share. As a group, sell-side analysts forecast that Root will post -0.08 earnings per share for the current fiscal year.

About Root

Root, Inc provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.

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