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

Key Points

• Root, Inc. has received an average recommendation of "Hold" from ten research firms, with eight recommending a hold and two a buy, and an average price target of $123.83.
• Insiders, including CEO Alexander E. Timm, recently sold shares of Root, resulting in a decrease in their ownership positions, with the stock having recently opened at $86.76.
• Institutional investors have shown significant interest, with T. Rowe Price increasing its stake in Root by 66.3% and hedge funds owning 59.82% of the stock.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has earned an average recommendation of "Hold" from the ten research firms that are covering the company, Marketbeat.com reports. Eight investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $123.8333.

Several research firms have commented on ROOT. UBS Group reissued a "neutral" rating and issued a $105.00 target price (down from $140.00) on shares of Root in a research report on Monday, August 18th. Wells Fargo & Company upped their price objective on shares of Root from $118.00 to $120.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. Wall Street Zen downgraded shares of Root from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Zacks Research cut Root from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. Finally, Jefferies Financial Group lowered their price objective on Root from $172.00 to $138.00 and set a "buy" rating on the stock in a report on Monday, August 11th.

Insider Activity at Root

In related news, insider Mahtiyar Bonakdarpour sold 5,750 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total value of $516,005.00. Following the transaction, the insider directly owned 274,226 shares in the company, valued at approximately $24,609,041.24. This trade represents a 2.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Alexander E. Timm sold 10,861 shares of Root stock in a transaction on Tuesday, September 2nd. The stock was 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 owned 157,748 shares in the company, valued at $14,020,642.24. This trade represents a 6.44% decrease in their position. The disclosure for this sale can be found here. Company insiders own 11.71% of the company's stock.

Institutional Investors Weigh In On Root

Several hedge funds and other institutional investors have recently made changes to their positions in the business. T. Rowe Price Investment Management Inc. increased its stake in shares of Root by 66.3% in the first quarter. T. Rowe Price Investment Management Inc. now owns 679,696 shares of the company's stock worth $90,699,000 after purchasing an additional 271,097 shares during the period. Ensign Peak Advisors Inc acquired a new stake in Root in the 2nd quarter valued at approximately $33,829,000. Invesco Ltd. increased its position in Root by 5,575.0% in the 1st quarter. Invesco Ltd. now owns 256,792 shares of the company's stock worth $34,266,000 after buying an additional 252,267 shares during the period. American Century Companies Inc. bought a new position in Root in the 1st quarter worth approximately $30,786,000. Finally, Driehaus Capital Management LLC acquired a new position in shares of Root during the first quarter worth approximately $20,423,000. 59.82% of the stock is owned by institutional investors and hedge funds.

Root Stock Down 4.6%

ROOT opened at $86.76 on Monday. The company has a market capitalization of $1.34 billion, a PE ratio of 17.32 and a beta of 2.22. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.26 and a quick ratio of 1.26. Root has a fifty-two week low of $36.87 and a fifty-two week high of $181.14. The business has a 50-day moving average of $96.82 and a 200-day moving average of $120.94.

Root (NASDAQ:ROOT - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $1.29 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.23. The firm had revenue of $382.90 million for the quarter, compared to the consensus estimate of $348.36 million. Root had a return on equity of 38.24% and a net margin of 6.02%.The firm's revenue was up 32.4% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.52) earnings per share. Equities research analysts forecast that Root will post -0.08 EPS 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.