Root (NASDAQ:ROOT) Price Target Lowered to $89.00 at Wells Fargo & Company

Key Points

• Wells Fargo & Company has lowered its price target for Root from $120.00 to $89.00, indicating a potential upside of 6.06% from the current price.
• Root has received mixed ratings from analysts, with some downgrading it to "hold" while others maintain a "buy" rating.
• Insider selling has occurred recently, with CEO Alexander E. Timm selling over 10,000 shares at an average price of $88.88, reducing his ownership stake by 6.44%.

Root (NASDAQ:ROOT - Get Free Report) had its price target dropped by research analysts at Wells Fargo & Company from $120.00 to $89.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's target price points to a potential upside of 6.06% from the company's current price.

ROOT has been the subject of several other research reports. Zacks Research cut shares of Root from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. TD Cowen increased their target price on shares of Root from $51.00 to $125.00 and gave the company a "hold" rating in a research report on Tuesday, July 8th. UBS Group reissued a "neutral" rating and set a $105.00 target price (down previously from $140.00) on shares of Root in a research report on Monday, August 18th. Keefe, Bruyette & Woods cut their price target on shares of Root from $170.00 to $165.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Finally, Wall Street Zen lowered shares of Root from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Two investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Root currently has an average rating of "Hold" and an average target price of $118.67.

Root Price Performance

Shares of ROOT traded up $2.08 during trading hours on Wednesday, reaching $83.92. 83,951 shares of the stock traded hands, compared to its average volume of 545,478. The company has a market cap of $1.30 billion, a P/E ratio of 16.72 and a beta of 2.22. Root has a 52-week low of $36.87 and a 52-week high of $181.14. The company has a current ratio of 1.26, a quick ratio of 1.26 and a debt-to-equity ratio of 0.82. The company's 50-day moving average price is $95.47 and its two-hundred day moving average price is $120.13.

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

Insider Buying and Selling

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

Hedge Funds Weigh In On Root

Institutional investors have recently bought and sold shares of the stock. Twin Tree Management LP purchased a new position in Root during the 1st quarter valued at about $37,000. KBC Group NV purchased a new position in Root during the 1st quarter valued at about $48,000. Russell Investments Group Ltd. grew its stake in Root by 511.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock valued at $94,000 after acquiring an additional 614 shares in the last quarter. Ameritas Investment Partners Inc. grew its stake in Root by 28.5% during the 2nd 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 in the last quarter. Finally, Tower Research Capital LLC TRC grew its stake in shares of Root by 237.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company's stock valued at $164,000 after buying an additional 899 shares in the last quarter. Hedge funds and other institutional investors own 59.82% of the company's stock.

Root Company Profile

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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