Roots (TSE:ROOT) Downgraded by TD to "Hold"

Key Points

• TD downgraded Roots from a Buy to a Hold and raised its target to C$4.25 (from C$4.00), implying roughly a 6.52% upside from the current price.
• Roots shares traded around C$3.99 (1‑year range C$2.07–C$4.05) with a market cap of C$156.46M and volume slightly below its average.
• The company reported quarterly EPS of C$0.42 on C$115.46M revenue but shows negative profitability (net margin -11.62%, ROE -21.42%), a P/E of -4.99, high leverage (debt/equity 85.26) and a low quick ratio (0.25).

Roots (TSE:ROOT - Get Free Report) was downgraded by investment analysts at TD from a "buy" rating to a "hold" rating in a report issued on Friday,BayStreet.CA reports. They presently have a C$4.25 target price on the stock, up from their previous target price of C$4.00. TD's target price suggests a potential upside of 6.52% from the company's current price.

Roots Price Performance

Shares of ROOT stock traded up C$0.01 during mid-day trading on Friday, reaching C$3.99. The company's stock had a trading volume of 11,555 shares, compared to its average volume of 12,349. Roots has a 1-year low of C$2.07 and a 1-year high of C$4.05. The company has a market cap of C$156.46 million, a P/E ratio of -4.99, a PEG ratio of -0.54 and a beta of -0.21. The company has a debt-to-equity ratio of 85.26, a quick ratio of 0.25 and a current ratio of 1.41. The firm's 50-day moving average is C$3.38 and its two-hundred day moving average is C$3.29.

Roots (TSE:ROOT - Get Free Report) last announced its quarterly earnings data on Thursday, April 9th. The company reported C$0.42 earnings per share (EPS) for the quarter. Roots had a negative net margin of 11.62% and a negative return on equity of 21.42%. The company had revenue of C$115.46 million during the quarter. On average, research analysts predict that Roots will post 0.29 earnings per share for the current year.

Roots Company Profile

Roots Corp provides a portfolio of apparel, leather goods, accessories, and footwear for men, women, and children under the Roots brand. Its merchandise includes genuine leather, such as jackets, bags, and luggage; kids & baby clothing; and leather, linens, towels, and accessories. The company operates through two segments: Direct-To-Consumer, which accounts for majority revenue, and Partners & Other. The DTC segment sells products through the company's corporate retail stores and e-commerce. The Partners & Other segment engage in the wholesale of Roots branded products to the company's international operating partner, and it earns royalties on the retail sales of Roots-branded products.

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