Root (NASDAQ:ROOT) Shares Gap Up on Strong Earnings

Root, Inc. (NASDAQ:ROOT) shares gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $98.71, but opened at $119.90. Root shares last traded at $117.63, with a volume of 505,025 shares traded.

The company reported $1.30 EPS for the quarter, beating analysts’ consensus estimates of ($0.63) by $1.93. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The company had revenue of $326.70 million during the quarter, compared to the consensus estimate of $287.79 million.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on ROOT. JMP Securities lowered Root from an “outperform” rating to a “market perform” rating in a report on Friday, November 22nd. UBS Group increased their target price on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a report on Monday, November 4th. Citizens Jmp lowered Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $90.00 price target (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Finally, Wells Fargo & Company upped their price target on shares of Root from $80.00 to $97.00 and gave the stock an “equal weight” rating in a research note on Thursday. Five analysts have rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, Root presently has a consensus rating of “Moderate Buy” and an average price target of $77.83.

Hedge Funds Weigh In On Root

Hedge funds have recently bought and sold shares of the business. FMR LLC increased its position in Root by 966.2% during the third quarter. FMR LLC now owns 18,040 shares of the company’s stock worth $682,000 after buying an additional 16,348 shares during the last quarter. Barclays PLC increased its position in Root by 361.6% during the third quarter. Barclays PLC now owns 14,033 shares of the company’s stock worth $529,000 after buying an additional 10,993 shares during the last quarter. Versor Investments LP acquired a new position in Root during the third quarter worth $216,000. Nordea Investment Management AB increased its position in Root by 7.3% during the fourth quarter. Nordea Investment Management AB now owns 20,697 shares of the company’s stock worth $1,497,000 after buying an additional 1,416 shares during the last quarter. Finally, Point72 Asset Management L.P. acquired a new stake in shares of Root in the third quarter valued at about $428,000. 59.82% of the stock is owned by institutional investors and hedge funds.

Root Trading Up 20.7 %

The company has a market capitalization of $1.80 billion, a price-to-earnings ratio of -96.83 and a beta of 2.58. The company has a 50-day moving average price of $91.90 and a 200-day moving average price of $70.20. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65.

About Root

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.