Wells Fargo & Company Issues Pessimistic Forecast for Root (NASDAQ:ROOT) Stock Price

Root (NASDAQ:ROOT) had its target price cut by analysts at Wells Fargo & Company from $142.00 to $118.00 in a research report issued on Thursday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price objective indicates a potential upside of 1.94% from the stock’s previous close.

Several other research analysts have also recently weighed in on the stock. Keefe, Bruyette & Woods upped their price objective on shares of Root from $150.00 to $170.00 and gave the stock an “outperform” rating in a research report on Thursday, May 8th. TD Cowen boosted their target price on Root from $51.00 to $125.00 and gave the stock a “hold” rating in a research report on Tuesday. Wall Street Zen cut shares of Root from a “buy” rating to a “hold” rating in a research report on Saturday, June 14th. Finally, Jefferies Financial Group increased their target price on shares of Root from $115.00 to $150.00 and gave the company a “buy” rating in a report on Friday, April 11th. Six research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $130.50.

Root Stock Down 4.8%

Shares of NASDAQ ROOT opened at $115.76 on Thursday. Root has a 52 week low of $34.04 and a 52 week high of $181.14. The company has a market cap of $1.78 billion, a P/E ratio of 36.18 and a beta of 2.26. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.87. The business has a 50-day simple moving average of $135.12 and a two-hundred day simple moving average of $122.33.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, May 7th. The company reported $1.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.62. The business had revenue of $349.40 million for the quarter, compared to analyst estimates of $305.24 million. Root had a net margin of 4.11% and a return on equity of 27.33%. Root’s revenue was up 37.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.42) EPS. Research analysts anticipate that Root will post -0.08 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Alexander E. Timm sold 8,290 shares of the firm’s stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $130.60, for a total value of $1,082,674.00. Following the completion of the transaction, the chief executive officer owned 168,609 shares in the company, valued at $22,020,335.40. This trade represents a 4.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mahtiyar Bonakdarpour sold 5,256 shares of the firm’s stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $130.60, for a total transaction of $686,433.60. Following the transaction, the insider directly owned 281,645 shares of the company’s stock, valued at $36,782,837. This represents a 1.83% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 246,083 shares of company stock valued at $33,362,319 over the last ninety days. 11.76% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Root

A number of hedge funds have recently bought and sold shares of the company. Twin Tree Management LP bought a new stake in shares of Root in the 1st quarter worth $37,000. KBC Group NV purchased a new position in Root in the 1st quarter worth about $48,000. Russell Investments Group Ltd. lifted its stake in Root by 651.8% during the 4th quarter. Russell Investments Group Ltd. now owns 421 shares of the company’s stock valued at $31,000 after acquiring an additional 365 shares during the period. KLP Kapitalforvaltning AS purchased a new stake in shares of Root during the 4th quarter valued at about $94,000. Finally, Blueshift Asset Management LLC bought a new stake in shares of Root in the first quarter worth approximately $204,000. Institutional investors own 59.82% of the company’s stock.

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.