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

Key Points

• Analysts rate Root “Hold” on average: Five of seven analysts recommend holding the stock, while two recommend buying it. The average 12-month price target is $86.00.
• Root recently exceeded earnings expectations: The company reported quarterly EPS of $2.09 versus the $0.84 consensus estimate, while revenue rose 12.5% year over year to $393.5 million, slightly below forecasts.
• Shares remain volatile and below their yearly high: Root opened at $54.15, compared with a 52-week range of $40.91 to $129.53. Institutional investors own approximately 59.82% of the company.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has earned an average rating of "Hold" from the seven ratings firms that are covering the stock, MarketBeat reports. Five investment analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 12-month price objective among analysts that have covered the stock in the last year is $86.00.

Several equities analysts have recently issued reports on ROOT shares. Zacks Research upgraded shares of Root from a "strong sell" rating to a "hold" rating in a report on Monday, June 8th. UBS Group set a $50.00 price target on Root and gave the stock a "neutral" rating in a research report on Monday, May 11th. TD Cowen restated a "hold" rating on shares of Root in a research note on Wednesday, June 17th. Weiss Ratings raised Root from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday. Finally, Keefe, Bruyette & Woods lowered their price objective on Root from $104.00 to $95.00 and set an "outperform" rating for the company in a research note on Tuesday, April 7th.

Root Stock Down 6.7%

Shares of Root stock opened at $54.15 on Friday. Root has a 1 year low of $40.91 and a 1 year high of $129.53. The firm has a market cap of $857.19 million, a price-to-earnings ratio of 16.21 and a beta of 2.85. The company has a 50-day moving average of $56.98 and a 200 day moving average of $55.83. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.07 and a quick ratio of 1.07.

Root (NASDAQ:ROOT - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $2.09 EPS for the quarter, topping the consensus estimate of $0.84 by $1.25. The business had revenue of $393.50 million for the quarter, compared to analyst estimates of $398.16 million. Root had a net margin of 3.58% and a return on equity of 19.97%. Root's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.07 earnings per share. As a group, sell-side analysts anticipate that Root will post 3.28 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Root

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

About Root

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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