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

Shares of Root, Inc. (NASDAQ:ROOT) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company 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, topping 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 for the quarter, compared to analysts’ expectations of $272.77 million. During the same period last year, the company earned ($3.16) earnings per share. The company’s quarterly revenue was up 165.1% on a year-over-year basis.

Wall Street Analysts Forecast Growth

ROOT has been the topic of several research reports. Wells Fargo & Company cut their price target on shares of Root from $71.00 to $64.00 and set an “equal weight” rating on the stock in a report on Thursday, October 10th. UBS Group cut their price target on shares of Root from $71.00 to $61.00 and set a “neutral” rating on the stock in a report on Tuesday, August 13th. Keefe, Bruyette & Woods restated an “outperform” rating and issued a $82.00 price target (down previously from $88.00) on shares of Root in a report on Friday, August 16th. Cantor Fitzgerald upgraded shares of Root to a “strong-buy” rating in a research note on Thursday, October 3rd. Finally, Jefferies Financial Group dropped their price objective on shares of Root from $84.00 to $72.00 and set a “buy” rating on the stock in a research note on Wednesday, October 9th. Four analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Root currently has an average rating of “Moderate Buy” and an average price target of $55.63.

Hedge Funds Weigh In On Root

A number of hedge funds have recently added to or reduced their stakes in the business. Hood River Capital Management LLC acquired a new stake in shares of Root during the 2nd quarter worth approximately $9,547,000. Driehaus Capital Management LLC acquired a new stake in shares of Root during the 2nd quarter worth approximately $9,154,000. Tidal Investments LLC acquired a new stake in shares of Root during the 1st quarter worth approximately $1,997,000. Bank of New York Mellon Corp acquired a new stake in shares of Root during the 2nd quarter worth approximately $1,280,000. Finally, Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Root during the 1st quarter worth approximately $1,171,000. Institutional investors and hedge funds own 59.82% of the company’s stock.

Root Price Performance

The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of -7.05 and a beta of 2.53. The business has a 50-day moving average price of $40.25 and a two-hundred day moving average price of $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.