Roots (TSE:ROOT) Trading 1% Higher - Still a Buy?

Key Points

• TD cut Roots from a "buy" to a "hold" while raising its price target to C$4.25; the stock has a consensus rating of "Moderate Buy" with a consensus target of C$4.13 (one Buy, one Hold).
• Shares traded at C$3.93 (+1%) on light volume (4,495 shares, down 62% vs. average); the company has a market cap of C$154M and valuation metrics including a PE of 32.75 and PEG of -0.54, with leverage/liquidity showing debt/equity of 67.56 and a quick ratio of 0.25.
• Recent quarter: Roots reported C$0.42 EPS on C$115.46M revenue, with a net margin of 1.68% and ROE of 3.16%; sell-side analysts expect C$0.29 EPS for the current fiscal year.

Roots Co. (TSE:ROOT - Get Free Report) traded up 1% during mid-day trading on Friday . The stock traded as high as C$3.93 and last traded at C$3.93. 4,495 shares changed hands during trading, a decline of 62% from the average session volume of 11,697 shares. The stock had previously closed at C$3.89.

Analyst Upgrades and Downgrades

Separately, TD cut shares of Roots from a "buy" rating to a "hold" rating and boosted their price target for the company from C$4.00 to C$4.25 in a research report on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of C$4.13.

Roots Trading Up 1.0%

The firm has a market cap of C$154.04 million, a PE ratio of 32.75, a PEG ratio of -0.54 and a beta of -0.21. The company has a quick ratio of 0.25, a current ratio of 1.30 and a debt-to-equity ratio of 67.56. The stock's fifty day simple moving average is C$3.64 and its two-hundred day simple moving average is C$3.35.

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 for the quarter. The business had revenue of C$115.46 million for the quarter. Roots had a net margin of 1.68% and a return on equity of 3.16%. On average, sell-side analysts forecast that Roots Co. will post 0.29 EPS for the current fiscal year.

About Roots

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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