Root, Inc. (NASDAQ:ROOT) Receives $128.00 Average Price Target from Brokerages

Key Points

• Root, Inc. has received a consensus rating of "Hold" from nine research firms, with six analysts giving a hold rating, two a buy rating, and one a strong buy rating.
• Recent insider transactions include the sale of shares by both Director Jerri Devard and CEO Alexander E. Timm, indicating a decrease in their positions by 9.28% and 4.69%, respectively.
• The company's latest quarterly earnings showed an EPS of $1.29, exceeding analyst expectations, and revenue increased by 32.4% compared to the same quarter last year.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has been given an average recommendation of "Hold" by the nine analysts that are presently covering the stock, Marketbeat reports. Six analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $123.8333.

A number of equities analysts have issued reports on the company. TD Cowen increased their price objective on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a report on Tuesday, July 8th. Keefe, Bruyette & Woods cut their target price on Root from $170.00 to $165.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. UBS Group reissued a "neutral" rating and issued a $105.00 target price (down from $140.00) on shares of Root in a research note on Monday. Wall Street Zen cut Root from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, Wells Fargo & Company increased their target price on Root from $118.00 to $120.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th.

Insider Activity at Root

In related news, Director Julie Szudarek sold 2,790 shares of the stock in a transaction on Thursday, June 5th. The stock was sold at an average price of $133.80, for a total transaction of $373,302.00. Following the sale, the director directly owned 13,332 shares of the company's stock, valued at $1,783,821.60. This trade represents a 17.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Mahtiyar Bonakdarpour sold 5,256 shares of the stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $130.60, for a total value of $686,433.60. Following the sale, the insider directly owned 281,645 shares in the company, valued at $36,782,837. This trade represents a 1.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 21,083 shares of company stock valued at $2,805,069 over the last three months. 11.76% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of ROOT. Russell Investments Group Ltd. lifted its holdings in Root by 651.8% in the fourth quarter. Russell Investments Group Ltd. now owns 421 shares of the company's stock valued at $31,000 after acquiring an additional 365 shares during the period. Twin Tree Management LP bought a new position in Root in the first quarter valued at about $37,000. KBC Group NV bought a new position in Root in the first quarter valued at about $48,000. Aquatic Capital Management LLC lifted its holdings in Root by 92.1% in the fourth quarter. Aquatic Capital Management LLC now owns 1,537 shares of the company's stock valued at $112,000 after acquiring an additional 737 shares during the period. Finally, Ameritas Investment Partners Inc. lifted its holdings in Root by 28.5% in the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company's stock valued at $139,000 after acquiring an additional 241 shares during the period. Institutional investors own 59.82% of the company's stock.

Root Trading Up 1.5%

Shares of Root stock traded up $1.33 during midday trading on Friday, reaching $88.09. 663,511 shares of the company's stock traded hands, compared to its average volume of 731,514. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market cap of $1.36 billion, a PE ratio of 17.58 and a beta of 2.25. The stock has a 50 day moving average of $117.74 and a 200-day moving average of $127.87. Root has a 12 month low of $34.04 and a 12 month high of $181.14.

Root (NASDAQ:ROOT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $1.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.06 by $0.23. The business had revenue of $382.90 million during 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 quarterly revenue was up 32.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.52) earnings per share. As a group, equities analysts expect 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.