Root (NASDAQ:ROOT) Given New $80.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut Root’s price target to $80 from $95 while maintaining an “outperform” rating, implying 68.47% potential upside from the cited $47.48 share price.
• Analyst sentiment remains cautious overall: Root has a consensus “Hold” rating from two Buy and five Hold recommendations, with an average price target of $82.25.
• Root shares were reported down 21.2%; the company’s latest quarter showed adjusted earnings of $2.09 per share versus an $0.84 consensus estimate, while revenue rose 12.5% year over year to $393.5 million.

Root (NASDAQ:ROOT - Get Free Report) had its target price cut by research analysts at Keefe, Bruyette & Woods from $95.00 to $80.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 68.47% from the stock's current price.

A number of other analysts have also weighed in on the company. Wells Fargo & Company upped their price objective on Root from $58.00 to $61.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 9th. Zacks Research upgraded Root from a "strong sell" rating to a "hold" rating in a report on Monday, June 8th. UBS Group set a $50.00 target price on shares of Root and gave the company a "neutral" rating in a report on Monday, May 11th. Weiss Ratings upgraded shares of Root from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 28th. Finally, TD Cowen reaffirmed a "hold" rating on shares of Root in a research report on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $82.25.

Root Trading Down 21.2%

Shares of ROOT stock opened at $47.48 on Thursday. Root has a twelve month low of $40.91 and a twelve month high of $119.50. The stock has a market cap of $751.50 million, a price-to-earnings ratio of 14.59 and a beta of 2.89. The company's 50-day moving average price is $57.11 and its 200-day moving average price is $55.37. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.61.

Root (NASDAQ:ROOT - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $2.09 EPS for the quarter, beating analysts' consensus estimates of $0.84 by $1.25. Root had a net margin of 3.58% and a return on equity of 19.97%. The company had revenue of $393.50 million for the quarter, compared to analysts' expectations of $398.16 million. During the same quarter in the prior year, the company posted $1.07 earnings per share. Root's revenue for the quarter was up 12.5% compared to the same quarter last year. As a group, equities analysts predict that Root will post 3.28 earnings per share for the current year.

Institutional Trading of Root

Institutional investors have recently made changes to their positions in the stock. CoreCap Advisors LLC purchased a new position in Root in the 2nd quarter worth approximately $42,000. Russell Investments Group Ltd. raised its stake in shares of Root by 511.7% during the second quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock valued at $94,000 after purchasing an additional 614 shares during the period. Advisory Services Network LLC purchased a new stake in shares of Root during the third quarter valued at approximately $144,000. Tower Research Capital LLC TRC boosted its stake in shares of Root by 237.2% in the second quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company's stock valued at $164,000 after purchasing an additional 899 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Root during the 3rd quarter valued at $194,000. 59.82% of the stock is owned by hedge funds and other 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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