Root (NASDAQ:ROOT) Reaches New 1-Year High – Here’s Why

Root, Inc. (NASDAQ:ROOT)’s share price hit a new 52-week high on Tuesday . The stock traded as high as $181.14 and last traded at $177.69, with a volume of 802993 shares traded. The stock had previously closed at $160.26.

Analysts Set New Price Targets

ROOT has been the topic of a number of research analyst reports. Wells Fargo & Company restated a “buy” rating on shares of Root in a research report on Sunday, March 2nd. Scotiabank restated a “sector perform” rating on shares of Root in a report on Sunday, March 2nd. Finally, UBS Group increased their target price on shares of Root from $67.00 to $130.00 and gave the stock a “neutral” rating in a research note on Friday, March 7th. Five equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $88.33.

Root Stock Performance

The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The company has a market capitalization of $2.70 billion, a price-to-earnings ratio of -144.46 and a beta of 2.48. The firm has a 50-day simple moving average of $116.19 and a two-hundred day simple moving average of $82.74.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, February 26th. The company reported $1.30 earnings per share for the quarter, topping the consensus estimate of ($0.63) by $1.93. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The firm had revenue of $326.70 million for the quarter, compared to the consensus estimate of $287.79 million. On average, sell-side analysts anticipate that Root, Inc. will post -0.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in Root by 16.2% during the 4th quarter. Vanguard Group Inc. now owns 526,928 shares of the company’s stock worth $38,250,000 after purchasing an additional 73,413 shares during the period. T. Rowe Price Investment Management Inc. purchased a new stake in shares of Root during the fourth quarter worth approximately $29,661,000. Renaissance Technologies LLC raised its holdings in Root by 41.8% in the fourth quarter. Renaissance Technologies LLC now owns 263,515 shares of the company’s stock valued at $19,129,000 after acquiring an additional 77,699 shares in the last quarter. State Street Corp raised its holdings in Root by 0.3% in the third quarter. State Street Corp now owns 176,891 shares of the company’s stock valued at $6,683,000 after acquiring an additional 444 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. lifted its stake in Root by 163.2% in the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 127,923 shares of the company’s stock worth $9,286,000 after acquiring an additional 79,317 shares during the last quarter. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.