Root, Inc. (NASDAQ:ROOT) Receives Average Rating of “Hold” from Brokerages

Shares of Root, Inc. (NASDAQ:ROOT) have earned an average rating of “Hold” from the eight ratings firms that are currently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $125.80.

A number of research firms recently commented on ROOT. Zacks Research raised Root from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. Jefferies Financial Group reduced their price objective on shares of Root from $172.00 to $138.00 and set a “buy” rating on the stock in a research note on Monday, August 11th. Wells Fargo & Company lifted their target price on shares of Root from $89.00 to $96.00 and gave the stock an “equal weight” rating in a research note on Thursday, November 6th. Keefe, Bruyette & Woods reissued an “outperform” rating on shares of Root in a research report on Friday, November 7th. Finally, Wall Street Zen lowered Root from a “hold” rating to a “sell” rating in a research report on Saturday, November 8th.

Root Trading Up 6.3%

ROOT opened at $80.32 on Tuesday. The company’s 50 day moving average price is $84.12 and its two-hundred day moving average price is $106.79. The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of 24.27 and a beta of 2.21. Root has a fifty-two week low of $68.08 and a fifty-two week high of $181.14. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.23 and a quick ratio of 1.23.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, November 5th. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08. The company had revenue of $387.80 million for the quarter, compared to analyst estimates of $363.06 million. Root had a net margin of 3.80% and a return on equity of 23.36%. Root’s revenue was up 26.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.35 earnings per share. As a group, research analysts predict that Root will post -0.08 earnings per share for the current year.

Insider Buying and Selling at Root

In other Root news, CEO Alexander E. Timm sold 10,861 shares of the firm’s stock in a transaction 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 sale, the chief executive officer directly owned 157,748 shares in the company, valued at approximately $14,020,642.24. This trade represents a 6.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mahtiyar Bonakdarpour sold 5,750 shares of the company’s stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total transaction of $516,005.00. Following the transaction, the insider owned 274,226 shares in the company, valued at $24,609,041.24. This represents a 2.05% decrease in their position. The disclosure for this sale is available in the SEC filing. 11.76% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Root

A number of hedge funds have recently added to or reduced their stakes in the company. TD Asset Management Inc boosted its holdings in Root by 32.6% during the second quarter. TD Asset Management Inc now owns 16,214 shares of the company’s stock worth $2,075,000 after purchasing an additional 3,982 shares during the last quarter. Valmark Advisers Inc. boosted its stake in shares of Root by 50.7% in the 2nd quarter. Valmark Advisers Inc. now owns 10,365 shares of the company’s stock worth $1,326,000 after buying an additional 3,486 shares during the last quarter. Alberta Investment Management Corp bought a new position in shares of Root in the second quarter valued at approximately $1,497,000. IFC Advisors LLC purchased a new stake in shares of Root during the second quarter valued at approximately $3,791,000. Finally, Requisite Capital Management LLC purchased a new stake in shares of Root during the second quarter valued at approximately $875,000. Institutional investors and hedge funds own 59.82% of the company’s stock.

Root Company Profile

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.