Root (NASDAQ:ROOT) Raised to Hold at Zacks Research

Root (NASDAQ:ROOT) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other analysts have also recently issued reports about the company. Weiss Ratings cut Root from a “hold (c)” rating to a “sell (d+)” rating in a report on Friday, November 7th. Wall Street Zen downgraded Root from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Keefe, Bruyette & Woods restated an “outperform” rating on shares of Root in a research report on Friday, November 7th. UBS Group reaffirmed a “neutral” rating and set a $105.00 price target (down from $140.00) on shares of Root in a research note on Monday, August 18th. Finally, Wells Fargo & Company increased their price target on shares of Root from $89.00 to $96.00 and gave the company an “equal weight” rating in a report on Thursday, November 6th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $125.80.

Root Stock Performance

Shares of NASDAQ:ROOT traded down $5.87 during midday trading on Tuesday, hitting $82.20. The stock had a trading volume of 445,209 shares, compared to its average volume of 552,107. Root has a 1 year low of $68.48 and a 1 year high of $181.14. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 0.76. The stock has a 50 day moving average price of $87.43 and a two-hundred day moving average price of $110.73. The company has a market capitalization of $1.27 billion, a PE ratio of 24.83 and a beta of 2.21.

Root (NASDAQ:ROOT) last announced its quarterly earnings data on Wednesday, November 5th. The company reported ($0.35) EPS for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.08. Root had a net margin of 3.80% and a return on equity of 23.36%. The firm had revenue of $387.80 million during the quarter, compared to the consensus estimate of $363.06 million. During the same quarter last year, the firm earned $1.35 earnings per share. The firm’s revenue was up 26.9% compared to the same quarter last year. As a group, equities analysts predict that Root will post -0.08 earnings per share for the current fiscal year.

Insider Activity

In other Root news, insider Mahtiyar Bonakdarpour sold 5,750 shares of Root stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total transaction of $516,005.00. Following the completion of the transaction, the insider owned 274,226 shares in the company, valued at approximately $24,609,041.24. The trade was a 2.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Alexander E. Timm sold 10,861 shares of the company’s stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $88.88, for a total transaction of $965,325.68. Following the completion of the sale, the chief executive officer directly owned 157,748 shares in the company, valued at $14,020,642.24. This trade represents a 6.44% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 11.76% of the company’s stock.

Hedge Funds Weigh In On Root

Institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in shares of Root by 25.9% in the third quarter. Vanguard Group Inc. now owns 724,541 shares of the company’s stock valued at $64,854,000 after acquiring an additional 149,064 shares in the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in Root by 66.3% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 679,696 shares of the company’s stock valued at $90,699,000 after purchasing an additional 271,097 shares in the last quarter. American Century Companies Inc. boosted its stake in shares of Root by 54.8% during the 2nd quarter. American Century Companies Inc. now owns 357,176 shares of the company’s stock worth $45,708,000 after purchasing an additional 126,467 shares during the last quarter. Ensign Peak Advisors Inc acquired a new stake in shares of Root during the 2nd quarter worth about $33,829,000. Finally, Invesco Ltd. grew its holdings in shares of Root by 5,575.0% during the first quarter. Invesco Ltd. now owns 256,792 shares of the company’s stock worth $34,266,000 after buying an additional 252,267 shares in the last quarter. 59.82% of the stock is owned by institutional investors and hedge funds.

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.