Keefe, Bruyette & Woods Has Lowered Expectations for Root (NASDAQ:ROOT) Stock Price

Root (NASDAQ:ROOT) had its price objective decreased by investment analysts at Keefe, Bruyette & Woods from $75.00 to $70.00 in a note issued to investors on Thursday, Benzinga reports. The firm presently has an “outperform” rating on the stock. Keefe, Bruyette & Woods‘s price objective suggests a potential upside of 61.40% from the stock’s current price.

A number of other analysts have also weighed in on ROOT. Wells Fargo & Company upped their target price on shares of Root from $47.00 to $53.00 and gave the stock an “equal weight” rating in a report on Thursday. Jefferies Financial Group downgraded shares of Root from a “buy” rating to a “hold” rating and cut their price target for the company from $78.00 to $58.00 in a report on Tuesday, August 11th. Weiss Ratings reissued a “hold (c)” rating on shares of Root in a report on Monday, October 26th. Finally, TD Cowen lowered shares of Root from a “hold” rating to a “strong sell” rating in a research report on Thursday, August 20th. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $57.75.

Root Price Performance

Shares of ROOT traded down $2.91 during midday trading on Thursday, hitting $43.37. 349,577 shares of the company traded hands, compared to its average volume of 154,754. The stock has a 50-day moving average of $50.89 and a 200-day moving average of $53.90. Root has a one year low of $40.91 and a one year high of $91.00. The firm has a market cap of $671.80 million, a P/E ratio of 9.13 and a beta of 3.06. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.02.

Root (NASDAQ:ROOT) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.63 by $0.23. Root had a net margin of 3.78% and a return on equity of 19.72%. The firm had revenue of $381.30 million for the quarter, compared to the consensus estimate of $384.43 million. As a group, sell-side analysts predict that Root will post 4.46 EPS for the current fiscal year.

Institutional Trading of Root

A number of large investors have recently modified their holdings of ROOT. State of Wyoming bought a new position in shares of Root in the third quarter worth approximately $289,000. Sequoia Financial Advisors LLC purchased a new stake in Root in the second quarter valued at approximately $219,000. Prosperitas Financial LLC lifted its position in Root by 4.4% during the second quarter. Prosperitas Financial LLC now owns 27,411 shares of the company’s stock valued at $1,533,000 after purchasing an additional 1,149 shares during the last quarter. CoreCap Advisors LLC bought a new stake in Root during the second quarter valued at approximately $42,000. Finally, Quantinno Capital Management LP bought a new stake in Root during the first quarter valued at approximately $920,000. Institutional investors own 59.82% of the company’s stock.

Root News Summary

Here are the key news stories impacting Root this week:

• Neutral Sentiment: Wells Fargo raised its price target to $53 from $47 but maintained an Equal Weight rating, suggesting limited conviction that the shares will outperform. Wells Fargo price target
• Neutral Sentiment: Root’s Q3 2026 earnings-call transcript was published, but the provided article information does not include specific management commentary or outlook that could explain the stock move. Q3 2026 earnings call transcript
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target to $70 from $75, a less optimistic valuation, although it kept an Outperform rating. KBW price target update

About Root

Root, Inc (NASDAQ:ROOT) is an insurance technology company that uses mobile technology and data-driven underwriting to provide personal insurance products. The company is best known for its automobile insurance, which is offered through a digital platform designed to allow customers to obtain quotes, purchase coverage and manage policies through a smartphone.

Root’s auto insurance model uses information collected through its mobile application, including driving-related data, to evaluate individual driving behavior and help determine eligibility and pricing.