Root (NASDAQ:ROOT) Earns Market Outperform Rating from JMP Securities

Root (NASDAQ:ROOT)‘s stock had its “market outperform” rating reaffirmed by equities researchers at JMP Securities in a research note issued on Tuesday, Benzinga reports. They presently have a $90.00 price target on the stock. JMP Securities’ price target points to a potential upside of 110.82% from the company’s previous close.

Several other research firms have also commented on ROOT. Wells Fargo & Company lowered their price target on Root from $71.00 to $64.00 and set an “equal weight” rating for the company in a research report on Thursday, October 10th. Jefferies Financial Group lowered their price target on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. UBS Group lowered their price target on Root from $71.00 to $61.00 and set a “neutral” rating for the company in a research report on Tuesday, August 13th. Keefe, Bruyette & Woods restated an “outperform” rating and set a $82.00 price target (down from $88.00) on shares of Root in a research report on Friday, August 16th. Finally, Cantor Fitzgerald upgraded Root to a “strong-buy” rating in a research report on Thursday, October 3rd. Four 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 company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.63.

Root Price Performance

ROOT stock opened at $42.69 on Tuesday. The business has a fifty day moving average of $41.63 and a two-hundred day moving average of $53.37. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 1.98. The stock has a market cap of $636.08 million, a price-to-earnings ratio of -5.49 and a beta of 2.53. Root has a 52-week low of $7.22 and a 52-week high of $86.57.

Root (NASDAQ:ROOT) last posted its earnings results on Wednesday, August 7th. The company reported ($0.52) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.74) by $1.22. The company had revenue of $289.20 million during the quarter, compared to analysts’ expectations of $264.80 million. Root had a negative return on equity of 50.80% and a negative net margin of 9.81%. The firm’s quarterly revenue was up 286.6% compared to the same quarter last year. During the same quarter last year, the firm earned ($2.55) earnings per share. As a group, research analysts anticipate that Root will post -2.13 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Alpha DNA Investment Management LLC boosted its holdings in Root by 5.5% in the second quarter. Alpha DNA Investment Management LLC now owns 9,306 shares of the company’s stock valued at $480,000 after purchasing an additional 486 shares during the period. Vanguard Personalized Indexing Management LLC lifted its holdings in Root by 76.8% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock worth $306,000 after buying an additional 2,576 shares during the last quarter. Sequoia Financial Advisors LLC purchased a new stake in Root during the 1st quarter worth about $293,000. Algert Global LLC purchased a new stake in Root during the 2nd quarter worth about $288,000. Finally, Quantbot Technologies LP purchased a new stake in Root during the 1st quarter worth about $431,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.