Root, Inc. (NASDAQ:ROOT) Given Consensus Recommendation of “Hold” by Brokerages

Root, Inc. (NASDAQ:ROOT) has earned a consensus rating of “Hold” from the nine brokerages that are presently covering the company, MarketBeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $59.38.

ROOT has been the topic of several recent research reports. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $90.00 price objective (up from $82.00) on shares of Root in a research note on Tuesday, November 5th. Wells Fargo & Company increased their price target on shares of Root from $78.00 to $80.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 14th. Jefferies Financial Group lowered their price objective on Root from $84.00 to $72.00 and set a “buy” rating on the stock in a report on Wednesday, October 9th. Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a research note on Friday, November 22nd. Finally, Cantor Fitzgerald raised Root to a “strong-buy” rating in a report on Thursday, October 3rd.

Root Stock Performance

NASDAQ ROOT opened at $82.57 on Wednesday. The firm has a market cap of $1.25 billion, a P/E ratio of -67.13 and a beta of 2.55. Root has a 52-week low of $7.22 and a 52-week high of $118.15. The business’s 50-day moving average price is $84.23 and its 200 day moving average price is $63.49. The company has a quick ratio of 1.39, a current ratio of 1.39 and a debt-to-equity ratio of 1.65.

Root (NASDAQ:ROOT) last released its earnings results on Wednesday, October 30th. The company reported $1.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.61) by $1.96. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%. The business had revenue of $305.70 million for the quarter, compared to analyst estimates of $272.77 million. During the same quarter in the previous year, the company posted ($3.16) earnings per share. The company’s revenue for the quarter was up 165.1% compared to the same quarter last year. On average, equities research analysts expect that Root will post -1.2 earnings per share for the current year.

Insider Buying and Selling

In other Root news, major shareholder Meyer Malka sold 50,959 shares of the firm’s stock in a transaction on Thursday, October 31st. The stock was sold at an average price of $84.78, for a total transaction of $4,320,304.02. Following the completion of the transaction, the insider now owns 102 shares of the company’s stock, valued at approximately $8,647.56. This trade represents a 99.80 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Julie Szudarek sold 2,000 shares of the business’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $96.33, for a total value of $192,660.00. Following the completion of the transaction, the director now directly owns 15,003 shares of the company’s stock, valued at approximately $1,445,238.99. This trade represents a 11.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 246,905 shares of company stock valued at $20,440,479. 11.71% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Algert Global LLC acquired a new stake in shares of Root during the second quarter worth $288,000. SG Americas Securities LLC purchased a new position in Root during the third quarter worth about $412,000. Versor Investments LP acquired a new stake in Root in the 3rd quarter worth about $216,000. Dynamic Technology Lab Private Ltd purchased a new stake in Root in the 3rd quarter valued at about $539,000. Finally, Quantbot Technologies LP increased its stake in shares of Root by 120.0% during the 3rd quarter. Quantbot Technologies LP now owns 14,836 shares of the company’s stock valued at $561,000 after acquiring an additional 8,092 shares during the last quarter. Institutional investors and hedge funds own 59.82% of the company’s stock.

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.