Root (NASDAQ:ROOT) Stock Price Up 9.2% - Time to Buy?

Key Points

• Root shares rose 9.2% to about $50.55 midday Wednesday, though volume (~163,936 shares) was roughly half the average and the price remains below the 200‑day moving average of $67.90.
• Multiple analysts have upgraded Root from "sell" to "hold," leaving a MarketBeat consensus of "Hold" with an average target of $92.40, even as UBS and Keefe, Bruyette & Woods trimmed price targets to $52 and $95 respectively.
• Root beat last quarter's estimates with $0.31 EPS and $397M revenue (revenue +21.5% YoY), but analysts still forecast a full‑year EPS of -0.08; the company has a market cap of about $796.5M and a beta of 2.90.

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s stock price rose 9.2% during mid-day trading on Wednesday . The company traded as high as $50.34 and last traded at $50.5550. Approximately 163,936 shares changed hands during trading, a decline of 50% from the average daily volume of 329,694 shares. The stock had previously closed at $46.31.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Weiss Ratings raised Root from a "sell (d+)" rating to a "hold (c)" rating in a report on Thursday, February 26th. Zacks Research raised shares of Root from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. Wall Street Zen upgraded shares of Root from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Keefe, Bruyette & Woods cut their price objective 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. Finally, UBS Group decreased their target price on shares of Root from $90.00 to $52.00 and set a "neutral" rating on the stock in a research report on Monday, March 9th. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $92.40.

Root Price Performance

The business's 50 day simple moving average is $50.46 and its 200-day simple moving average is $67.90. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.70. The stock has a market capitalization of $796.50 million, a price-to-earnings ratio of 22.06 and a beta of 2.90.

Root (NASDAQ:ROOT - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $0.31 EPS for the quarter, beating the consensus estimate of $0.03 by $0.28. The business had revenue of $397.00 million during the quarter, compared to the consensus estimate of $381.57 million. Root had a net margin of 2.58% and a return on equity of 15.34%. The company's revenue was up 21.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.30 earnings per share. On average, research analysts forecast that Root, Inc. will post -0.08 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC lifted its holdings in shares of Root by 122.2% in the first quarter. AQR Capital Management LLC now owns 10,229 shares of the company's stock worth $1,365,000 after acquiring an additional 5,626 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of 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 last quarter. JPMorgan Chase & Co. increased its position in Root by 389.3% during the 2nd quarter. JPMorgan Chase & Co. now owns 28,905 shares of the company's stock worth $3,699,000 after purchasing an additional 22,997 shares in the last quarter. Russell Investments Group Ltd. increased its position in Root by 511.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company's stock worth $94,000 after purchasing an additional 614 shares in the last quarter. Finally, New York State Common Retirement Fund lifted its stake in Root by 29.6% in the 2nd quarter. New York State Common Retirement Fund now owns 3,500 shares of the company's stock valued at $448,000 after purchasing an additional 800 shares during the last quarter. Institutional investors own 59.82% of the company's stock.

Root Company Profile

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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