Root (NASDAQ:ROOT) Shares Gap Up After Strong Earnings

Root, Inc. (NASDAQ:ROOT)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $98.71, but opened at $119.90. Root shares last traded at $117.63, with a volume of 505,025 shares trading hands.

The company reported $1.30 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.63) by $1.93. The business had revenue of $326.70 million during the quarter, compared to analysts’ expectations of $287.79 million. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%.

Analysts Set New Price Targets

A number of research firms have recently commented on ROOT. UBS Group increased their price objective on Root from $61.00 to $67.00 and gave the company a “neutral” rating in a report on Monday, November 4th. JMP Securities downgraded Root from an “outperform” rating to a “market perform” rating in a report on Friday, November 22nd. Citizens Jmp cut shares of Root from a “strong-buy” rating to a “hold” rating in a report on Friday, November 22nd. Wells Fargo & Company boosted their price objective on shares of Root from $80.00 to $97.00 and gave the stock an “equal weight” rating in a research report on Thursday. Finally, Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $90.00 target price (up from $82.00) on shares of Root in a research report on Tuesday, November 5th. Five investment analysts have rated the stock with a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $77.83.

Institutional Investors Weigh In On Root

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

Root Stock Up 25.6 %

The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39. The firm’s 50 day moving average price is $92.96 and its two-hundred day moving average price is $70.57. The firm has a market cap of $1.87 billion, a price-to-earnings ratio of -100.77 and a beta of 2.58.

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.