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

Root, Inc. (NASDAQ:ROOT) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock 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, beating analysts’ consensus estimates 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 previous year, the business earned ($3.16) earnings per share. The company’s revenue for the quarter was up 165.1% compared to the same quarter last year.

Analyst Ratings Changes

ROOT has been the topic of a number of recent analyst reports. Wells Fargo & Company dropped their price objective on Root from $71.00 to $64.00 and set an “equal weight” rating on the stock in a report on Thursday, October 10th. Cantor Fitzgerald raised Root to a “strong-buy” rating in a report on Thursday, October 3rd. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $82.00 target price (down from $88.00) on shares of Root in a research report on Friday, August 16th. UBS Group decreased their target price on Root from $71.00 to $61.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 13th. Finally, JMP Securities reiterated a “market outperform” rating and set a $90.00 target price on shares of Root in a research report on Tuesday, October 15th. Four research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Root currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.63.

Institutional Trading of Root

Several institutional investors and hedge funds have recently made changes to their positions in ROOT. Algert Global LLC purchased a new stake in shares of Root in the second quarter valued at $288,000. Sequoia Financial Advisors LLC purchased a new stake in shares of Root in the first quarter valued at $293,000. Vanguard Personalized Indexing Management LLC lifted its position in Root by 76.8% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after buying an additional 2,576 shares during the period. SG Americas Securities LLC purchased a new position in Root during the third quarter worth about $412,000. Finally, Quantbot Technologies LP purchased a new position in Root during the first quarter worth about $431,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Price Performance

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

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.