Root (NASDAQ:ROOT) Hits New 1-Year Low – What’s Next?

Root, Inc. (NASDAQ:ROOT)’s stock price reached a new 52-week low on Monday . The stock traded as low as $48.25 and last traded at $49.6750, with a volume of 102243 shares changing hands. The stock had previously closed at $51.88.

Analyst Ratings Changes

Several research firms have commented on ROOT. Wall Street Zen raised shares of Root from a “sell” rating to a “hold” rating in a research note on Saturday. Zacks Research raised shares of Root from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Keefe, Bruyette & Woods restated an “outperform” rating and set a $104.00 target price (down from $150.00) on shares of Root in a research report on Thursday, February 26th. Wells Fargo & Company reduced their price target on Root from $75.00 to $70.00 and set an “equal weight” rating on the stock in a report on Thursday, February 26th. Finally, Weiss Ratings upgraded Root from a “sell (d+)” rating to a “hold (c)” rating in a report on Thursday, February 26th. Two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $108.40.

Root Stock Down 3.6%

The stock has a market cap of $741.38 million, a PE ratio of 20.60 and a beta of 2.84. The business has a fifty day moving average of $65.76 and a 200-day moving average of $78.13. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.21 and a quick ratio of 1.21.

Root (NASDAQ:ROOT) last issued its earnings results on Wednesday, February 25th. The company reported $0.31 earnings per share for the quarter, beating analysts’ consensus estimates of $0.03 by $0.28. Root had a return on equity of 15.34% and a net margin of 2.58%.The business had revenue of $397.00 million during the quarter, compared to analyst estimates of $381.57 million. During the same period in the previous year, the company posted $1.30 EPS. Root’s revenue was up 21.5% on a year-over-year basis. Equities research analysts anticipate that Root, Inc. will post -0.08 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. State of Alaska Department of Revenue purchased a new stake in shares of Root in the 3rd quarter worth approximately $50,000. Russell Investments Group Ltd. raised its stake in Root by 511.7% in the second quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock worth $94,000 after buying an additional 614 shares in the last quarter. Ameritas Investment Partners Inc. lifted its holdings in Root by 28.5% during the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock worth $139,000 after buying an additional 241 shares during the period. Tower Research Capital LLC TRC lifted its holdings in Root by 237.2% during the second quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock worth $164,000 after buying an additional 899 shares during the period. Finally, Advisory Services Network LLC bought a new stake in Root during the 3rd quarter valued at $144,000. Hedge funds and other institutional investors own 59.82% of the company’s stock.

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.