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

Root (NASDAQ:ROOT) had its price target dropped by analysts at Keefe, Bruyette & Woods from $95.00 to $80.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Keefe, Bruyette & Woods’ price target would indicate a potential upside of 55.34% from the company’s current price.

A number of other brokerages have also recently weighed in on ROOT. Wells Fargo & Company lifted their price target on shares of Root from $58.00 to $61.00 and gave the company an “equal weight” rating in a research report on Thursday, July 9th. UBS Group set a $50.00 price objective on shares of Root and gave the stock a “neutral” rating in a research report on Monday, May 11th. TD Cowen reiterated a “hold” rating on shares of Root in a report on Wednesday, June 17th. Weiss Ratings raised Root from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. Finally, Zacks Research upgraded Root from a “strong sell” rating to a “hold” rating in a research note on Monday, June 8th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Root currently has an average rating of “Hold” and a consensus price target of $82.25.

Root Stock Performance

NASDAQ ROOT opened at $51.50 on Thursday. The stock has a fifty day simple moving average of $57.06 and a 200-day simple moving average of $55.20. The company has a current ratio of 1.02, a quick ratio of 1.07 and a debt-to-equity ratio of 0.60. The stock has a market cap of $815.25 million, a PE ratio of 14.55 and a beta of 2.89. Root has a twelve month low of $40.91 and a twelve month high of $104.47.

Root (NASDAQ:ROOT) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.66. Root had a net margin of 3.78% and a return on equity of 19.72%. The firm had revenue of $389.20 million for the quarter, compared to analyst estimates of $395.14 million. During the same period in the previous year, the firm earned $1.29 EPS. Root’s revenue was up 1.6% on a year-over-year basis. Equities analysts anticipate that Root will post 3.28 earnings per share for the current year.

Institutional Trading of Root

Several hedge funds have recently made changes to their positions in ROOT. CoreCap Advisors LLC acquired a new position in shares of Root in the second quarter valued at approximately $42,000. Russell Investments Group Ltd. lifted its holdings in Root by 511.7% during the 2nd 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. Advisory Services Network LLC purchased a new position in Root in the 3rd quarter valued at approximately $144,000. Tower Research Capital LLC TRC grew its stake in shares of Root by 237.2% in the second 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 in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank acquired a new position in shares of Root in the third quarter worth $194,000. Institutional investors and hedge funds own 59.82% of the company’s stock.

Trending Headlines about Root

Here are the key news stories impacting Root this week:

• Positive Sentiment: Root reported second-quarter EPS of $1.49, well above the $0.83 analyst consensus. Profit increased 15%, supported by pricing discipline and improved underwriting margins. Root’s Q2 profit rises 15% on pricing discipline
• Positive Sentiment: Management highlighted profitable growth, higher EBITDA and continued operating discipline during the earnings call. These trends suggest Root is prioritizing sustainable margins rather than unprofitable expansion. Root, Inc. Earnings Call Highlights Profitable Discipline
• Positive Sentiment: Keefe, Bruyette & Woods maintained an “outperform” rating and still sees substantial upside, although it lowered its price target from $95 to $80. Root price target update
• Neutral Sentiment: Root expects policies in force to be roughly flat year over year in 2026, while targeting a national footprint by the end of 2027. The expansion opportunity is meaningful, but near-term customer growth appears limited. Root 2026 policies and national footprint outlook
• Negative Sentiment: Second-quarter revenue of $389.2 million fell short of the approximately $395.1 million estimate, despite rising 1.6% year over year. The revenue miss may temper the positive impact of the earnings beat. Zacks ROOT post-earnings analysis
• Negative Sentiment: Analysts characterized ROOT’s valuation as demanding and sentiment as muted, suggesting a wait-and-see stance even as margins improve. Should You Buy, Sell or Hold ROOT Stock Post Q2 Earnings?

Root Company Profile

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.