Root (NASDAQ:ROOT) Stock Price Up 11.8% – Here’s Why

Root, Inc. (NASDAQ:ROOT) rose 11.8% on Monday . The company traded as high as $57.30 and last traded at $58.2050. Approximately 157,523 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 322,122 shares. The stock had previously closed at $52.06.

Analyst Ratings Changes

ROOT has been the subject of a number of analyst reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a report on Tuesday, May 26th. Keefe, Bruyette & Woods reduced their price target on Root from $104.00 to $95.00 and set an “outperform” rating for the company in a report on Tuesday, April 7th. UBS Group set a $50.00 price target on Root and gave the stock a “neutral” rating in a report on Monday, May 11th. Wall Street Zen raised Root from a “sell” rating to a “hold” rating in a report on Saturday, February 28th. Finally, Wells Fargo & Company increased their target price on Root from $52.00 to $58.00 and gave the company an “equal weight” rating in a report on Thursday, May 7th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Root has an average rating of “Hold” and a consensus target price of $93.20.

Root Stock Down 3.0%

The business has a fifty day simple moving average of $51.76 and a 200 day simple moving average of $61.90. The firm has a market cap of $882.05 million, a price-to-earnings ratio of 16.68 and a beta of 2.87. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.07 and a quick ratio of 1.07.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, May 6th. The company reported $2.09 EPS for the quarter, beating analysts’ consensus estimates of $0.84 by $1.25. Root had a return on equity of 19.97% and a net margin of 3.58%.The business had revenue of $393.50 million during the quarter, compared to analysts’ expectations of $398.16 million. During the same quarter in the prior year, the firm earned $1.07 earnings per share. The business’s revenue was up 12.5% compared to the same quarter last year. As a group, equities analysts forecast that Root, Inc. will post 2.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Root

A number of hedge funds have recently made changes to their positions in ROOT. Millennium Management LLC increased its holdings in shares of Root by 780.1% in the fourth quarter. Millennium Management LLC now owns 220,815 shares of the company’s stock valued at $15,949,000 after purchasing an additional 195,725 shares during the last quarter. UBS Group AG increased its holdings in shares of Root by 372.1% in the third quarter. UBS Group AG now owns 228,738 shares of the company’s stock valued at $20,474,000 after purchasing an additional 180,289 shares during the last quarter. Findell Capital Management LLC increased its holdings in shares of Root by 291.7% in the fourth quarter. Findell Capital Management LLC now owns 235,000 shares of the company’s stock valued at $16,974,000 after purchasing an additional 175,000 shares during the last quarter. Capital Research Global Investors increased its holdings in shares of Root by 31.7% in the fourth quarter. Capital Research Global Investors now owns 654,252 shares of the company’s stock valued at $47,257,000 after purchasing an additional 157,654 shares during the last quarter. Finally, Vanguard Group Inc. increased its holdings 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 purchasing an additional 149,064 shares during the last quarter. Institutional investors and hedge funds own 59.82% of the company’s stock.

Root Company Profile

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company’s core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.