Root (NASDAQ:ROOT) Price Target Raised to $61.00

Key Points

• Wells Fargo raised its price target on Root from $58 to $61 while keeping an equal weight rating, implying modest downside from the prior close.
• Analyst opinion on Root remains mixed overall, with the stock carrying an average Hold rating and a consensus price target of $86 across coverage.
• Root shares were down 2.2% to $64.75, even after the company recently reported earnings of $2.09 per share, well above expectations, and revenue growth of 12.5% year over year.

Root (NASDAQ:ROOT - Get Free Report) had its price target boosted by investment analysts at Wells Fargo & Company from $58.00 to $61.00 in a report released on Thursday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective indicates a potential downside of 5.79% from the company's previous close.

A number of other analysts have also commented on ROOT. Zacks Research upgraded shares of Root from a "strong sell" rating to a "hold" rating in a research note on Monday, June 8th. TD Cowen reaffirmed a "hold" rating on shares of Root in a report on Wednesday, June 17th. Weiss Ratings upgraded shares of Root from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. UBS Group set a $50.00 price objective on Root and gave the stock a "neutral" rating in a research note on Monday, May 11th. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Root from $104.00 to $95.00 and set an "outperform" rating for the company in a report on Tuesday, April 7th. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Root has an average rating of "Hold" and a consensus price target of $86.00.

Root Stock Down 2.2%

Shares of NASDAQ:ROOT traded down $1.46 on Thursday, hitting $64.75. 100,151 shares of the company traded hands, compared to its average volume of 312,026. The stock has a 50 day simple moving average of $55.82 and a 200-day simple moving average of $57.41. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.61. The company has a market cap of $1.02 billion, a PE ratio of 19.24 and a beta of 2.85. Root has a 52 week low of $40.91 and a 52 week high of $134.00.

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

Institutional Trading of Root

Several institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC raised its position in Root by 122.2% during the 1st quarter. AQR Capital Management LLC now owns 10,229 shares of the company's stock valued at $1,365,000 after purchasing an additional 5,626 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Root by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company's stock valued at $686,000 after purchasing an additional 229 shares during the period. JPMorgan Chase & Co. raised its holdings in shares of Root by 389.3% in the 2nd quarter. JPMorgan Chase & Co. now owns 28,905 shares of the company's stock valued at $3,699,000 after purchasing an additional 22,997 shares in the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Root by 511.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock valued at $94,000 after purchasing an additional 614 shares in the last quarter. Finally, New York State Common Retirement Fund lifted its position in shares of Root by 29.6% in the 2nd quarter. New York State Common Retirement Fund now owns 3,500 shares of the company's stock worth $448,000 after purchasing an additional 800 shares during the period. 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.

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