Root (NASDAQ:ROOT) Price Target Lowered to $138.00 at Jefferies Financial Group

Key Points

• Jefferies Financial Group has reduced Root's price target from $172.00 to $138.00, while maintaining a "buy" rating, indicating a potential upside of 56.36% from the stock's previous close.
• Root's stock is currently rated as a "hold" by multiple analysts, with a consensus average price target of $128.00, following recent mixed adjustments from various brokerage firms.
• The company's latest quarterly earnings report showed a significant year-over-year revenue increase of 32.4%, exceeding analysts' expectations and highlighting a positive trend in performance.

Root (NASDAQ:ROOT - Get Free Report) had its target price lowered by Jefferies Financial Group from $172.00 to $138.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Jefferies Financial Group's price target would indicate a potential upside of 56.36% from the stock's previous close.

A number of other research analysts have also weighed in on the company. TD Cowen raised their price objective on Root from $51.00 to $125.00 and gave the company a "hold" rating in a research 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. Wall Street Zen downgraded 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 company an "equal weight" rating in a research note on Thursday. Seven analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Root currently has a consensus rating of "Hold" and an average price target of $128.00.

Root Stock Down 2.2%

ROOT stock opened at $88.26 on Monday. Root has a twelve month low of $34.04 and a twelve month high of $181.14. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.82. The firm has a market cap of $1.36 billion, a PE ratio of 17.62 and a beta of 2.25. The business has a 50 day moving average of $128.02 and a 200 day moving average of $128.53.

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

Insider Buying and Selling

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

Institutional Trading of Root

Several large investors have recently modified their holdings of ROOT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Root by 3.6% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,912 shares of the company's stock worth $357,000 after buying an additional 171 shares during the period. MetLife Investment Management LLC raised its stake in shares of Root by 5.0% in the fourth quarter. MetLife Investment Management LLC now owns 5,382 shares of the company's stock worth $391,000 after buying an additional 255 shares during the period. Legal & General Group Plc raised its stake in shares of Root by 3.6% in the fourth quarter. Legal & General Group Plc now owns 7,955 shares of the company's stock worth $577,000 after buying an additional 273 shares during the period. Twin Tree Management LP bought a new position in shares of Root in the first quarter worth about $37,000. Finally, ProShare Advisors LLC raised its stake in shares of Root by 16.9% in the second quarter. ProShare Advisors LLC now owns 2,184 shares of the company's stock worth $279,000 after buying an additional 315 shares during the period. Institutional investors own 59.82% of the company's stock.

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.

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