Root (NASDAQ:ROOT) Price Target Cut to $70.00 by Analysts at Wells Fargo & Company

Root (NASDAQ:ROOT) had its price target decreased by Wells Fargo & Company from $75.00 to $70.00 in a report released on Thursday,Benzinga reports. Wells Fargo & Company currently has an equal weight rating on the stock.

ROOT has been the subject of several other reports. Weiss Ratings reissued a “sell (d+)” rating on shares of Root in a research report on Monday, December 29th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $104.00 price target (down from $150.00) on shares of Root in a research note on Thursday. Wall Street Zen downgraded shares of Root from a “hold” rating to a “sell” rating in a research report on Sunday, January 18th. Finally, Zacks Research upgraded shares of Root from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Two research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $108.40.

Root Stock Performance

NASDAQ:ROOT opened at $57.72 on Thursday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.23 and a current ratio of 1.23. Root has a fifty-two week low of $53.37 and a fifty-two week high of $181.14. The company has a 50 day simple moving average of $67.20 and a two-hundred day simple moving average of $79.14. The company has a market capitalization of $895.24 million, a PE ratio of 24.88 and a beta of 2.76.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, February 25th. The company reported $0.31 EPS for the quarter, beating analysts’ consensus estimates of $0.03 by $0.28. Root had a net margin of 2.58% and a return on equity of 15.93%. The company had revenue of $397.00 million for the quarter, compared to analyst estimates of $381.57 million. During the same period in the prior year, the firm posted $1.30 EPS. The company’s quarterly revenue was up 21.5% on a year-over-year basis. Research analysts anticipate that Root will post -0.08 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in ROOT. Gilder Gagnon Howe & Co. LLC increased its position in shares of Root by 3.0% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company’s stock worth $797,000 after acquiring an additional 181 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Root by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company’s stock worth $686,000 after purchasing an additional 229 shares in the last quarter. Ameritas Investment Partners Inc. raised its stake in shares of Root by 28.5% in the second quarter. Ameritas Investment Partners Inc. now owns 1,087 shares of the company’s stock worth $139,000 after purchasing an additional 241 shares during the last quarter. ProShare Advisors LLC lifted its holdings in shares of Root by 16.9% in the second quarter. ProShare Advisors LLC now owns 2,184 shares of the company’s stock valued at $279,000 after purchasing an additional 315 shares in the last quarter. Finally, Rhumbline Advisers lifted its holdings in shares of Root by 2.9% in the third quarter. Rhumbline Advisers now owns 15,811 shares of the company’s stock valued at $1,415,000 after purchasing an additional 443 shares in the last quarter. 59.82% of the stock is currently owned by institutional investors and hedge funds.

More Root News

Here are the key news stories impacting Root this week:

• Positive Sentiment: Q4 beat and profitable full‑year: Root reported $0.31 EPS vs. $0.03 consensus and $397M revenue (beat). Management released the shareholder letter, investor presentation and hosted an earnings webcast. These results and the return to profitability are clear fundamental positives for valuation and future cash‑flow expectations. Root Q4 2025 Earnings
• Positive Sentiment: Bullish media/retail angle: Coverage pointing out that Root turned profitable in 2025 and high retail/Reddit sentiment (reported bullish) suggests some investors view the weakness as an opportunity and see upside if the profitability trend continues. Root Insurance Turned Profitable in 2025
• Neutral Sentiment: Investor materials & calls available: The company posted the full results, investor presentation and earnings-call transcript (useful for digging into loss ratios, growth cadence and margin drivers). These items provide transparency but by themselves don’t guarantee an immediate re‑rating. GlobeNewswire: Root Announces Q4 & Full Year Results
• Negative Sentiment: Analyst repositioning: Wells Fargo trimmed its price target from $75 to $70 and moved to an “equal weight” rating — a sign of reduced near‑term conviction from a major shop, which can pressure sentiment even though the PT still implies upside. Analyst Price Target Note
• Negative Sentiment: Insider & institutional selling and technical weakness: Reports show recent insider sales and large institutional position reductions alongside heavy trading volume; the stock is below its 50‑ and 200‑day moving averages — factors that can amplify downside as investors lock in gains or exit on weakness. Quiver / Press Summary

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.