Root (NASDAQ:ROOT) Shares Gap Up After Better-Than-Expected Earnings

Root, Inc. (NASDAQ:ROOT)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $69.65, but opened at $84.68. Root shares last traded at $82.30, with a volume of 492,376 shares changing hands.

The company reported ($0.42) EPS for the quarter, topping the consensus estimate of ($2.51) by $2.09. Root had a negative net margin of 32.40% and a negative return on equity of 73.62%. The firm had revenue of $254.90 million during the quarter, compared to analysts’ expectations of $203.99 million. During the same period in the previous year, the company earned ($2.88) EPS. Root’s revenue for the quarter was up 263.6% on a year-over-year basis.

Analyst Upgrades and Downgrades

ROOT has been the subject of a number of research analyst reports. TD Cowen assumed coverage on shares of Root in a research report on Wednesday, January 10th. They set a “market perform” rating for the company. Citigroup raised their target price on shares of Root from $11.00 to $12.00 and gave the company a “neutral” rating in a research note on Friday, February 23rd. Wells Fargo & Company upped their price target on shares of Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a research report on Wednesday. JMP Securities boosted their price objective on Root from $15.00 to $90.00 and gave the stock a “market outperform” rating in a research note on Wednesday. Finally, Jefferies Financial Group upgraded Root from a “hold” rating to a “buy” rating and increased their target price for the company from $10.00 to $40.00 in a research note on Friday, March 1st. Five research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, Root has an average rating of “Hold” and a consensus target price of $39.50.

Institutional Trading of Root

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Citigroup Inc. grew its holdings in Root by 218,250.0% during the 3rd quarter. Citigroup Inc. now owns 4,367 shares of the company’s stock worth $42,000 after acquiring an additional 4,365 shares in the last quarter. Barclays PLC raised its stake in Root by 229,380.0% during the third quarter. Barclays PLC now owns 11,474 shares of the company’s stock valued at $109,000 after buying an additional 11,469 shares in the last quarter. Corton Capital Inc. bought a new position in Root during the 3rd quarter worth approximately $120,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Root during the 3rd quarter worth approximately $158,000. Finally, Jump Financial LLC acquired a new position in shares of Root in the 4th quarter worth approximately $234,000. Institutional investors own 59.82% of the company’s stock.

Root Stock Up 0.4 %

The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.60 and a current ratio of 1.60. The firm has a market capitalization of $1.02 billion, a P/E ratio of -6.83 and a beta of 2.86. The stock has a fifty day moving average price of $52.43 and a two-hundred day moving average price of $24.71.

Root Company Profile

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.