Root (NASDAQ:ROOT) Shares Up 11.8% – Here’s What Happened

Root, Inc. (NASDAQ:ROOT)’s stock price rose 11.8% during trading on Monday . The stock traded as high as $57.30 and last traded at $58.2050. Approximately 157,523 shares were traded during trading, a decline of 51% from the average daily volume of 322,122 shares. The stock had previously closed at $52.06.

Analysts Set New Price Targets

ROOT has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a research note on Tuesday, May 26th. Zacks Research cut shares of Root from a “hold” rating to a “strong sell” rating in a research note on Wednesday, May 6th. UBS Group set a $50.00 price objective on shares of Root and gave the company a “neutral” rating in a research note on Monday, May 11th. Wall Street Zen raised shares of Root from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Finally, Wells Fargo & Company boosted their price target on shares of Root from $52.00 to $58.00 and gave the stock an “equal weight” rating in a research note on Thursday, May 7th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Root has a consensus rating of “Hold” and an average price target of $93.20.

Root Trading Up 10.0%

The firm has a market cap of $906.11 million, a PE ratio of 17.14 and a beta of 2.88. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.07 and a current ratio of 1.07. The stock’s 50 day simple moving average is $51.50 and its 200 day simple moving average is $62.10.

Root (NASDAQ:ROOT) last announced its quarterly earnings data on Wednesday, May 6th. The company reported $2.09 earnings per share for the quarter, topping analysts’ consensus estimates of $0.84 by $1.25. The firm had revenue of $393.50 million during the quarter, compared to analyst estimates of $398.16 million. Root had a net margin of 3.58% and a return on equity of 19.97%. The business’s quarterly revenue was up 12.5% on a year-over-year basis. During the same period in the previous year, the business posted $1.07 EPS. On average, sell-side analysts forecast that Root, Inc. will post 2.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Root

Hedge funds have recently made changes to their positions in the business. Russell Investments Group Ltd. lifted its holdings in shares of Root by 511.7% in the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock worth $94,000 after acquiring an additional 614 shares during the last quarter. Advisory Services Network LLC bought a new stake in shares of Root in the 3rd quarter worth approximately $144,000. Tower Research Capital LLC TRC lifted its holdings in shares of Root by 237.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock worth $164,000 after acquiring an additional 899 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in shares of Root in the 3rd quarter worth approximately $194,000. Finally, SBI Securities Co. Ltd. lifted its holdings in shares of Root by 181.8% in the 4th quarter. SBI Securities Co. Ltd. now owns 2,728 shares of the company’s stock worth $197,000 after acquiring an additional 1,760 shares during the last quarter. 59.82% of the stock is currently owned by institutional investors.

About Root

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company’s core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.