Root, Inc. (NASDAQ:ROOT) Receives Average Rating of “Hold” from Analysts

Root, Inc. (NASDAQ:ROOT) has earned an average rating of “Hold” from the ten brokerages that are presently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, seven have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $118.6667.

ROOT has been the topic of a number of recent analyst reports. Wall Street Zen downgraded shares of Root from a “buy” rating to a “hold” rating in a report on Saturday, August 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Root in a research report on Wednesday. Keefe, Bruyette & Woods reduced their price target on shares of Root from $170.00 to $165.00 and set an “outperform” rating for the company in a research report on Friday, August 8th. Jefferies Financial Group lowered their price objective on Root from $172.00 to $138.00 and set a “buy” rating on the stock in a report on Monday, August 11th. Finally, Wells Fargo & Company cut their price objective on Root from $120.00 to $89.00 and set an “equal weight” rating for the company in a research note on Wednesday.

Root Stock Down 1.9%

ROOT stock opened at $81.39 on Monday. The firm’s fifty day simple moving average is $93.38 and its 200-day simple moving average is $118.62. The company has a market capitalization of $1.26 billion, a P/E ratio of 16.25 and a beta of 2.22. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.26 and a quick ratio of 1.26. Root has a 12 month low of $36.87 and a 12 month high of $181.14.

Root (NASDAQ:ROOT) last released its quarterly earnings data on Wednesday, August 6th. The company reported $1.29 EPS for the quarter, beating the consensus estimate of $1.06 by $0.23. The business had revenue of $382.90 million for the quarter, compared to the consensus estimate of $348.36 million. Root had a net margin of 6.02% and a return on equity of 38.24%. The business’s revenue for the quarter was up 32.4% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.52) EPS. As a group, equities research analysts forecast that Root will post -0.08 earnings per share for the current year.

Insider Transactions at Root

In other news, insider Mahtiyar Bonakdarpour sold 5,750 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total value of $516,005.00. Following the completion of the sale, the insider directly owned 274,226 shares in the company, valued at $24,609,041.24. This represents a 2.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Alexander E. Timm sold 10,861 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total transaction of $965,325.68. Following the completion of the sale, the chief executive officer owned 157,748 shares of the company’s stock, valued at $14,020,642.24. This trade represents a 6.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. 11.76% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Root

Several hedge funds and other institutional investors have recently bought and sold shares of ROOT. T. Rowe Price Investment Management Inc. increased its position in Root by 66.3% during the first quarter. T. Rowe Price Investment Management Inc. now owns 679,696 shares of the company’s stock worth $90,699,000 after purchasing an additional 271,097 shares during the last quarter. Ensign Peak Advisors Inc purchased a new position in shares of Root in the second quarter valued at approximately $33,829,000. Invesco Ltd. grew its holdings in shares of Root by 5,575.0% in the first quarter. Invesco Ltd. now owns 256,792 shares of the company’s stock valued at $34,266,000 after purchasing an additional 252,267 shares in the last quarter. American Century Companies Inc. acquired a new position in shares of Root in the first quarter valued at approximately $30,786,000. Finally, Driehaus Capital Management LLC acquired a new position in shares of Root in the first quarter valued at approximately $20,423,000. 59.82% of the stock is currently owned by institutional investors and hedge funds.

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.