Root (NASDAQ:ROOT) Price Target Lowered to $72.00 at Jefferies Financial Group

Root (NASDAQ:ROOT) had its target price reduced by equities research analysts at Jefferies Financial Group from $84.00 to $72.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the stock. Jefferies Financial Group’s target price would indicate a potential upside of 88.48% from the company’s previous close.

Several other equities analysts also recently commented on ROOT. UBS Group cut their price target on shares of Root from $71.00 to $61.00 and set a “neutral” rating on the stock in a report on Tuesday, August 13th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and set a $82.00 target price (down previously from $88.00) on shares of Root in a research note on Friday, August 16th. Finally, Cantor Fitzgerald raised Root to a “strong-buy” rating in a research note on Thursday, October 3rd. Four investment analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $57.38.

Root Price Performance

NASDAQ ROOT traded up $0.62 during trading on Wednesday, hitting $38.20. 201,516 shares of the stock traded hands, compared to its average volume of 474,283. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 1.98. Root has a 12-month low of $7.22 and a 12-month high of $86.57. The firm has a 50-day simple moving average of $43.32 and a 200-day simple moving average of $54.03. The company has a market capitalization of $569.18 million, a P/E ratio of -4.92 and a beta of 2.53.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, August 7th. The company reported ($0.52) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.74) by $1.22. Root had a negative net margin of 9.81% and a negative return on equity of 50.80%. The firm had revenue of $289.20 million for the quarter, compared to the consensus estimate of $264.80 million. During the same period in the previous year, the firm posted ($2.55) EPS. The business’s quarterly revenue was up 286.6% on a year-over-year basis. As a group, analysts predict that Root will post -2.13 EPS for the current year.

Institutional Investors Weigh In On Root

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROOT. Cannell Capital LLC lifted its position in Root by 144.0% during the 4th quarter. Cannell Capital LLC now owns 717,043 shares of the company’s stock worth $7,515,000 after acquiring an additional 423,120 shares during the period. Hood River Capital Management LLC purchased a new position in shares of Root in the second quarter worth about $9,547,000. Driehaus Capital Management LLC acquired a new stake in shares of Root during the second quarter worth about $9,154,000. Tidal Investments LLC purchased a new stake in Root in the first quarter valued at approximately $1,997,000. Finally, Bank of New York Mellon Corp acquired a new position in Root in the 2nd quarter worth approximately $1,280,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.