Root (NASDAQ:ROOT) Shares Gap Up After Analyst Upgrade

Shares of Root, Inc. (NASDAQ:ROOT) gapped up prior to trading on Friday after Wells Fargo & Company raised their price target on the stock from $64.00 to $78.00. The stock had previously closed at $68.39, but opened at $72.13. Wells Fargo & Company currently has an equal weight rating on the stock. Root shares last traded at $66.26, with a volume of 816,554 shares traded.

ROOT has been the topic of a number of other reports. JMP Securities reissued a “market outperform” rating and set a $90.00 price objective on shares of Root in a research report on Tuesday, October 15th. Jefferies Financial Group reduced their price target on shares of Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research report on Wednesday, October 9th. Cantor Fitzgerald upgraded shares of Root to a “strong-buy” rating in a report on Thursday, October 3rd. UBS Group reduced their target price on Root from $71.00 to $61.00 and set a “neutral” rating on the stock in a report on Tuesday, August 13th. Finally, Keefe, Bruyette & Woods restated an “outperform” rating and issued a $82.00 target price (down previously from $88.00) on shares of Root in a research note on Friday, August 16th. Four analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, Root has an average rating of “Moderate Buy” and a consensus target price of $57.38.

Institutional Trading of Root

Several institutional investors have recently added to or reduced their stakes in the business. SG Americas Securities LLC bought a new stake in Root in the 3rd quarter worth approximately $412,000. Algert Global LLC purchased a new stake in Root during the second quarter valued at $288,000. Driehaus Capital Management LLC purchased a new stake in Root during the second quarter valued at $9,154,000. Alpha DNA Investment Management LLC lifted 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 acquiring an additional 486 shares during the period. Finally, Hood River Capital Management LLC purchased a new position in Root in the second quarter worth about $9,547,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Stock Up 3.8 %

The company’s 50-day moving average price is $41.20 and its 200 day moving average price is $51.33. The company has a debt-to-equity ratio of 1.98, a quick ratio of 1.43 and a current ratio of 1.43. The stock has a market cap of $1.07 billion, a PE ratio of -57.73 and a beta of 2.34.

Root (NASDAQ:ROOT) last posted its quarterly earnings data on Wednesday, October 30th. The company reported $1.35 EPS for the quarter, topping the consensus estimate of ($0.61) by $1.96. Root had a negative return on equity of 10.13% and a negative net margin of 1.56%. The firm had revenue of $305.70 million during the quarter, compared to analyst estimates of $272.77 million. During the same period in the prior year, the business posted ($3.16) EPS. Root’s revenue was up 165.1% on a year-over-year basis. As a group, analysts forecast that Root, Inc. will post -2.13 EPS for the current fiscal year.

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.