Root (NASDAQ:ROOT) Shares Gap Up Following Analyst Upgrade

Root, Inc. (NASDAQ:ROOT) gapped up prior to trading on Friday after Wells Fargo & Company raised their price target on the stock from $64.00 to $78.00. The stock had previously closed at $68.39, but opened at $72.13. Wells Fargo & Company currently has an equal weight rating on the stock. Root shares last traded at $66.26, with a volume of 816,554 shares trading hands.

ROOT has been the topic of a number of other research reports. JMP Securities reissued a “market outperform” rating and set a $90.00 price objective on shares of Root in a report on Tuesday, October 15th. Keefe, Bruyette & Woods reissued an “outperform” rating and set a $82.00 price objective (down previously from $88.00) on shares of Root in a report on Friday, August 16th. Cantor Fitzgerald raised Root to a “strong-buy” rating in a report on Thursday, October 3rd. UBS Group lowered their price objective on Root from $71.00 to $61.00 and set a “neutral” rating on the stock in a report on Tuesday, August 13th. Finally, Jefferies Financial Group decreased their target price on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research note on Wednesday, October 9th. Four investment analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Root presently has an average rating of “Moderate Buy” and a consensus target price of $57.38.

Institutional Trading of Root

A number of hedge funds have recently modified their holdings of ROOT. Sequoia Financial Advisors LLC bought a new stake in shares of Root in the 1st quarter worth approximately $293,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Root during the 1st quarter worth approximately $1,171,000. Quantbot Technologies LP bought a new position in shares of Root during the 1st quarter worth approximately $431,000. Price T Rowe Associates Inc. MD bought a new position in shares of Root during the 1st quarter worth approximately $434,000. Finally, Tidal Investments LLC bought a new position in shares of Root during the 1st quarter worth approximately $1,997,000. Institutional investors own 59.82% of the company’s stock.

Root Price Performance

The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.43 and a current ratio of 1.43. The firm has a market cap of $1.07 billion, a P/E ratio of -57.73 and a beta of 2.34. The company has a 50-day moving average of $41.20 and a 200 day moving average of $51.33.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate of ($0.61) by $1.96. Root had a negative return on equity of 10.13% and a negative net margin of 1.56%. The business had revenue of $305.70 million during the quarter, compared to the consensus estimate of $272.77 million. During the same quarter last year, the company earned ($3.16) EPS. Root’s revenue was up 165.1% on a year-over-year basis. On average, sell-side analysts anticipate that Root, Inc. will post -2.13 EPS for the current year.

Root Company Profile

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.