Root (NASDAQ:ROOT) Shares Gap Up After Earnings Beat

Root, Inc. (NASDAQ:ROOT)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $98.71, but opened at $119.90. Root shares last traded at $117.63, with a volume of 505,025 shares.

The company reported $1.30 EPS for the quarter, beating analysts’ consensus estimates of ($0.63) by $1.93. The business had revenue of $326.70 million during the quarter, compared to the consensus estimate of $287.79 million. Root had a negative return on equity of 9.81% and a negative net margin of 1.56%.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on ROOT. UBS Group boosted their price target on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a research report on Monday, November 4th. Wells Fargo & Company boosted their price target on Root from $80.00 to $97.00 and gave the company an “equal weight” rating in a research report on Thursday. Citizens Jmp downgraded Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. JMP Securities downgraded Root from an “outperform” rating to a “market perform” rating in a research report on Friday, November 22nd. Finally, Keefe, Bruyette & Woods reissued an “outperform” rating and set a $90.00 price target (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. Five analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $77.83.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ROOT. Versor Investments LP acquired a new position in shares of Root during the third quarter worth about $216,000. Dynamic Technology Lab Private Ltd acquired a new stake in Root during the third quarter valued at approximately $539,000. Quantbot Technologies LP raised its stake in Root by 120.0% during the third quarter. Quantbot Technologies LP now owns 14,836 shares of the company’s stock valued at $561,000 after buying an additional 8,092 shares in the last quarter. FMR LLC raised its stake in Root by 966.2% during the third quarter. FMR LLC now owns 18,040 shares of the company’s stock valued at $682,000 after buying an additional 16,348 shares in the last quarter. Finally, MetLife Investment Management LLC grew its holdings in Root by 129.1% in the 3rd quarter. MetLife Investment Management LLC now owns 5,127 shares of the company’s stock worth $194,000 after buying an additional 2,889 shares in the last quarter. Institutional investors and hedge funds own 59.82% of the company’s stock.

Root Price Performance

The firm has a market capitalization of $1.80 billion, a P/E ratio of -96.83 and a beta of 2.58. The business has a fifty day moving average of $91.90 and a 200-day moving average of $70.20. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39.

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.