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

Root, Inc. (NASDAQ:ROOT)’s share price 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 changing hands.

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

Institutional Trading of Root

Hedge funds have recently made changes to their positions in the stock. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Root during the 1st quarter valued at about $1,171,000. Tidal Investments LLC purchased a new position in shares of Root during the first quarter worth approximately $1,997,000. Quantbot Technologies LP purchased a new position in shares of Root during the first quarter worth approximately $431,000. Driehaus Capital Management LLC bought a new stake in shares of Root in the 2nd quarter worth approximately $9,154,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Root during the 2nd quarter valued at $1,280,000. 59.82% of the stock is owned by institutional investors.

Root Stock 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 company has a market cap of $1.07 billion, a PE ratio of -57.73 and a beta of 2.34. The business’s 50-day moving average is $41.20 and its 200 day moving average is $51.33.

Root (NASDAQ:ROOT) last issued its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share for the quarter, beating the consensus estimate of ($0.61) by $1.96. The company had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $272.77 million. Root had a negative return on equity of 10.13% and a negative net margin of 1.56%. Root’s quarterly revenue was up 165.1% compared to the same quarter last year. During the same period in the prior year, the business posted ($3.16) EPS. On average, equities research analysts predict that Root, Inc. will post -2.13 EPS for the current fiscal 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.