Root (NASDAQ:ROOT) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo & Company has raised its price target for Root (NASDAQ:ROOT) from $118.00 to $120.00, which indicates a potential upside of 21.85%.
• Despite a recent drop in stock price, which is down 19.6% to $98.48, Root reported a quarterly revenue of $382.90 million, exceeding analysts' expectations.
• The company has received mixed ratings from analysts, with seven maintaining a hold rating and a consensus price target of $130.83.

Root (NASDAQ:ROOT - Get Free Report) had its price target upped by equities research analysts at Wells Fargo & Company from $118.00 to $120.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's target price suggests a potential upside of 21.85% from the company's previous close.

ROOT has been the topic of a number of other research reports. TD Cowen increased their target price on Root from $51.00 to $125.00 and gave the stock a "hold" rating in a research note on Tuesday, July 8th. Wall Street Zen cut Root from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Keefe, Bruyette & Woods boosted their target price on shares of Root from $150.00 to $170.00 and gave the company an "outperform" rating in a research report on Thursday, May 8th. Finally, Jefferies Financial Group raised their price target on shares of Root from $115.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, April 11th. Seven research 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, the company has an average rating of "Hold" and a consensus price target of $130.83.

Root Stock Down 19.6%

Shares of NASDAQ:ROOT traded down $24.07 during midday trading on Thursday, hitting $98.48. The stock had a trading volume of 1,101,546 shares, compared to its average volume of 532,581. The company has a market cap of $1.51 billion, a P/E ratio of 31.05 and a beta of 2.25. Root has a 12 month low of $34.04 and a 12 month high of $181.14. The business's 50-day simple moving average is $129.56 and its 200-day simple moving average is $127.81. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.87.

Root (NASDAQ:ROOT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $1.29 EPS for the quarter, topping analysts' consensus estimates of $1.06 by $0.23. The business had revenue of $382.90 million during the quarter, compared to analysts' expectations of $348.36 million. Root had a return on equity of 27.33% and a net margin of 4.11%. Root's quarterly revenue was up 32.4% on a year-over-year basis. During the same quarter last year, the company posted ($0.52) earnings per share. On average, sell-side analysts forecast that Root will post -0.08 earnings per share for the current fiscal year.

Insider Buying and Selling at Root

In other news, Director Jerri Devard sold 1,895 shares of Root stock in a transaction on Thursday, June 5th. The stock was sold at an average price of $141.50, for a total value of $268,142.50. Following the transaction, the director owned 18,532 shares in the company, valued at approximately $2,622,278. This trade represents a 9.28% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Julie Szudarek sold 2,790 shares of Root stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $133.80, for a total value of $373,302.00. Following the completion of the transaction, the director owned 13,332 shares in the company, valued at approximately $1,783,821.60. This represents a 17.31% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 21,083 shares of company stock valued at $2,805,069. 11.76% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ROOT. Twin Tree Management LP acquired a new position in Root in the 1st quarter worth about $37,000. KBC Group NV bought a new stake in shares of Root during the first quarter worth about $48,000. Russell Investments Group Ltd. increased its stake in shares of Root by 651.8% in the fourth quarter. Russell Investments Group Ltd. now owns 421 shares of the company's stock valued at $31,000 after buying an additional 365 shares during the period. KLP Kapitalforvaltning AS acquired a new position in Root in the 4th quarter valued at approximately $94,000. Finally, Blueshift Asset Management LLC bought a new position in shares of Root during the first quarter valued at $204,000. 59.82% of the stock is currently owned by institutional investors.

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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