Root (NASDAQ:ROOT) Hits New 52-Week High on Better-Than-Expected Earnings

Root, Inc. (NASDAQ:ROOT)’s stock price reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $89.50 and last traded at $86.04, with a volume of 1063720 shares. The stock had previously closed at $40.49.

The company reported $1.35 earnings per share for the quarter, topping the consensus estimate of ($0.61) by $1.96. Root had a negative return on equity of 50.80% and a negative net margin of 9.81%. The firm had revenue of $305.70 million for the quarter, compared to the consensus estimate of $272.77 million. During the same period in the prior year, the business posted ($3.16) earnings per share. The firm’s revenue for the quarter was up 165.1% compared to the same quarter last year.

Analyst Ratings Changes

Several brokerages have commented on ROOT. Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a research note on Thursday, October 3rd. JMP Securities reiterated a “market outperform” rating and issued a $90.00 target price on shares of Root in a research note on Tuesday, October 15th. Jefferies Financial Group lowered 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. Keefe, Bruyette & Woods reiterated an “outperform” rating and issued a $82.00 target price (down previously from $88.00) on shares of Root in a research note on Friday, August 16th. Finally, Wells Fargo & Company lowered their target price on Root from $71.00 to $64.00 and set an “equal weight” rating for the company in a research note on Thursday, October 10th. Four analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, Root currently has an average rating of “Moderate Buy” and an average price target of $55.63.

Institutional Investors Weigh In On Root

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

Root Trading Up 68.9 %

The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 1.98. The business has a 50 day simple moving average of $40.72 and a two-hundred day simple moving average of $51.28. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -11.91 and a beta of 2.53.

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.