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

Root, Inc. (NASDAQ:ROOT) has been given a consensus recommendation of “Hold” by the ten ratings firms that are currently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $124.40.

A number of analysts have issued reports on the stock. Keefe, Bruyette & Woods cut their price objective on shares of Root from $170.00 to $165.00 and set an “outperform” rating for the company in a report on Friday, August 8th. Wall Street Zen downgraded shares of Root from a “buy” rating to a “hold” rating in a report on Saturday, August 2nd. UBS Group reissued a “neutral” rating and issued a $105.00 price objective (down previously from $140.00) on shares of Root in a report on Monday, August 18th. Wells Fargo & Company cut their price objective on shares of Root from $120.00 to $89.00 and set an “equal weight” rating for the company in a report on Wednesday, October 8th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Root in a research report on Wednesday, October 8th.

Root Stock Performance

NASDAQ ROOT opened at $79.18 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.82. The company has a market capitalization of $1.22 billion, a P/E ratio of 15.80 and a beta of 2.21. Root has a 12-month low of $68.48 and a 12-month high of $181.14. The firm has a 50-day moving average price of $87.96 and a two-hundred day moving average price of $112.82.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $1.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.06 by $0.23. The firm had revenue of $382.90 million during 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% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.52) EPS. Analysts anticipate that Root will post -0.08 earnings per share for the current year.

Insider Activity at Root

In other news, CEO Alexander E. Timm sold 10,861 shares of the business’s stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total value of $965,325.68. Following the completion of the transaction, the chief executive officer directly owned 157,748 shares in the company, valued at approximately $14,020,642.24. The trade was a 6.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the business’s stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total transaction of $516,005.00. Following the completion of the transaction, the insider owned 274,226 shares of the company’s stock, valued at $24,609,041.24. The trade was a 2.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 11.71% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Root

A number of institutional investors have recently added to or reduced their stakes in the stock. State of Wyoming increased its position in Root by 41.9% during the 3rd quarter. State of Wyoming now owns 2,359 shares of the company’s stock worth $211,000 after purchasing an additional 696 shares in the last quarter. Principal Financial Group Inc. increased its position in Root by 21.2% during the 3rd quarter. Principal Financial Group Inc. now owns 43,579 shares of the company’s stock worth $3,901,000 after purchasing an additional 7,623 shares in the last quarter. Arizona State Retirement System increased its position in Root by 22.8% during the 3rd quarter. Arizona State Retirement System now owns 3,189 shares of the company’s stock worth $285,000 after purchasing an additional 593 shares in the last quarter. IFC Advisors LLC increased its position in Root by 52.0% during the 3rd quarter. IFC Advisors LLC now owns 45,034 shares of the company’s stock worth $4,031,000 after purchasing an additional 15,407 shares in the last quarter. Finally, New York State Common Retirement Fund increased its position in Root by 950.0% during the 3rd quarter. New York State Common Retirement Fund now owns 36,750 shares of the company’s stock worth $3,289,000 after purchasing an additional 33,250 shares in the last quarter. 59.82% of the stock is currently owned by institutional investors and hedge funds.

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.