Root, Inc. (NASDAQ:ROOT) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Root, Inc. (NASDAQ:ROOT) has been given a consensus recommendation of “Moderate Buy” by the eight ratings firms that are presently covering the company, Marketbeat Ratings reports. Four investment 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 company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $55.63.

A number of equities analysts have issued reports on the stock. Keefe, Bruyette & Woods restated an “outperform” rating and set a $82.00 target price (down previously from $88.00) on shares of Root in a research report on Friday, August 16th. Wells Fargo & Company reduced their target price on shares of Root from $71.00 to $64.00 and set an “equal weight” rating on the stock in a report on Thursday, October 10th. JMP Securities reaffirmed a “market outperform” rating and set a $90.00 price target on shares of Root in a research report on Tuesday, October 15th. UBS Group cut their price objective 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, Jefferies Financial Group decreased their target price on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th.

Root Stock Performance

ROOT opened at $37.81 on Monday. Root has a 1-year low of $7.22 and a 1-year high of $86.57. The stock has a market cap of $563.37 million, a P/E ratio of -4.87 and a beta of 2.53. The stock’s 50 day simple moving average is $40.70 and its 200 day simple moving average is $51.60. The company has a debt-to-equity ratio of 1.98, a current ratio of 1.43 and a quick ratio of 1.43.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, August 7th. The company reported ($0.52) earnings per share for the quarter, beating the consensus estimate of ($1.74) by $1.22. The company had revenue of $289.20 million for the quarter, compared to analyst estimates of $264.80 million. Root had a negative return on equity of 50.80% and a negative net margin of 9.81%. Root’s revenue was up 286.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($2.55) earnings per share. As a group, equities analysts anticipate that Root will post -2.13 EPS for the current fiscal year.

Institutional Investors Weigh In On Root

Several hedge funds and other institutional investors have recently bought and sold shares of ROOT. Hood River Capital Management LLC acquired a new stake in Root in the second quarter valued at $9,547,000. Driehaus Capital Management LLC bought a new stake in shares of Root in the 2nd quarter worth about $9,154,000. Tidal Investments LLC acquired a new stake in shares of Root in the 1st quarter valued at about $1,997,000. Bank of New York Mellon Corp bought a new position in shares of Root during the second quarter worth about $1,280,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new position in Root in the first quarter worth about $1,171,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.