Root, Inc. (NASDAQ:ROOT) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• "Hold" consensus from seven brokerages (five hold, two buy) with an average 12‑month target of $92.40, although several analysts have cut targets recently (UBS to $52, Keefe, Bruyette & Woods to $95), reflecting mixed views.
• Root beat quarterly expectations with EPS of $0.31 versus $0.03 and revenue of $397 million (up 21.5% year‑over‑year), and analysts expect about 2.15 EPS for the current fiscal year.
• The stock opened at $53.96 (one‑year range $40.91–$162.99), has a market cap of roughly $840 million and about 59.8% of shares are owned by institutional investors.

Root, Inc. (NASDAQ:ROOT - Get Free Report) has been given a consensus rating of "Hold" by the seven brokerages that are covering the firm, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average twelve-month target price among brokerages that have updated their coverage on the stock in the last year is $92.40.

ROOT has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods dropped their price target on shares of Root from $104.00 to $95.00 and set an "outperform" rating on the stock in a report on Tuesday, April 7th. UBS Group dropped their price target on shares of Root from $90.00 to $52.00 and set a "neutral" rating on the stock in a report on Monday, March 9th. Zacks Research raised shares of Root from a "strong sell" rating to a "hold" rating in a report on Monday, January 12th. Weiss Ratings raised shares of Root from a "sell (d+)" rating to a "hold (c)" rating in a report on Thursday, February 26th. Finally, Wall Street Zen raised shares of Root from a "sell" rating to a "hold" rating in a report on Saturday, February 28th.

Root Stock Performance

Shares of ROOT stock opened at $53.96 on Friday. Root has a one year low of $40.91 and a one year high of $162.99. The company's 50-day moving average is $49.65 and its 200 day moving average is $66.48. The company has a market capitalization of $839.62 million, a price-to-earnings ratio of 23.26 and a beta of 2.90. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.21 and a current ratio of 1.21.

Root (NASDAQ:ROOT - Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.03 by $0.28. The firm had revenue of $397.00 million for the quarter, compared to the consensus estimate of $381.57 million. Root had a net margin of 2.58% and a return on equity of 15.34%. The business's quarterly revenue was up 21.5% compared to the same quarter last year. During the same quarter last year, the firm posted $1.30 EPS. Sell-side analysts expect that Root will post 2.15 EPS for the current fiscal year.

Institutional Trading of Root

Institutional investors have recently made changes to their positions in the stock. Gilder Gagnon Howe & Co. LLC boosted its holdings in shares of Root by 3.0% in the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company's stock worth $797,000 after buying an additional 181 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Root by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company's stock worth $686,000 after buying an additional 229 shares during the last quarter. Rhumbline Advisers boosted its holdings in shares of Root by 2.9% in the third quarter. Rhumbline Advisers now owns 15,811 shares of the company's stock worth $1,415,000 after buying an additional 443 shares during the last quarter. Gabelli Funds LLC boosted its holdings in shares of Root by 10.9% in the third quarter. Gabelli Funds LLC now owns 5,100 shares of the company's stock worth $457,000 after buying an additional 500 shares during the last quarter. Finally, Swiss National Bank boosted its holdings in shares of Root by 2.4% in the fourth quarter. Swiss National Bank now owns 21,500 shares of the company's stock worth $1,553,000 after buying an additional 500 shares during the last quarter. Hedge funds and other institutional investors own 59.82% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.