Root (NASDAQ:ROOT) Hits New 1-Year High After Strong Earnings

Root, Inc. (NASDAQ:ROOT)’s stock price hit a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $89.50 and last traded at $86.04, with a volume of 1063720 shares trading hands. The stock had previously closed at $40.49.

The company reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.61) by $1.96. Root had a negative net margin of 9.81% and a negative return on equity of 50.80%. The business had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $272.77 million. During the same quarter in the prior year, the business posted ($3.16) EPS. The company’s revenue for the quarter was up 165.1% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several analysts recently commented on ROOT shares. JMP Securities reiterated a “market outperform” rating and issued a $90.00 price target 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 for the company in a research report on Wednesday, October 9th. Wells Fargo & Company cut their price objective on shares of Root from $71.00 to $64.00 and set an “equal weight” rating for the company in a research report on Thursday, October 10th. Cantor Fitzgerald upgraded shares of Root to a “strong-buy” rating in a research report on Thursday, October 3rd. Finally, UBS Group cut their price objective on shares of Root from $71.00 to $61.00 and set a “neutral” rating for the company in a research report on Tuesday, August 13th. Four investment analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Root presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.63.

Hedge Funds Weigh In On Root

Large investors have recently made changes to their positions in the stock. Sequoia Financial Advisors LLC purchased a new position in shares of Root in the 1st quarter valued at about $293,000. Algert Global LLC acquired a new stake in Root in the 2nd quarter valued at about $288,000. Vanguard Personalized Indexing Management LLC grew its stake in Root by 76.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 5,930 shares of the company’s stock valued at $306,000 after acquiring an additional 2,576 shares during the last quarter. Quantbot Technologies LP acquired a new stake in Root in the 1st quarter valued at about $431,000. Finally, Price T Rowe Associates Inc. MD acquired a new stake in shares of Root during the 1st quarter worth about $434,000. Hedge funds and other institutional investors own 59.82% of the company’s stock.

Root Price Performance

The company has a market capitalization of $1.49 billion, a price-to-earnings ratio of -7.05 and a beta of 2.53. The company’s 50 day simple moving average is $40.25 and its 200-day simple moving average is $51.16. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 1.98.

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.