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

Root, Inc. (NASDAQ:ROOT) hit a new 52-week low on Tuesday . The company traded as low as $42.51 and last traded at $43.27, with a volume of 68926 shares. The stock had previously closed at $43.29.

Analyst Upgrades and Downgrades

A number of research analysts have commented on ROOT shares. Weiss Ratings raised Root from a “sell (d+)” rating to a “hold (c)” rating in a report on Thursday, February 26th. UBS Group reduced their target price on shares of Root from $90.00 to $52.00 and set a “neutral” rating for the company in a research report on Monday, March 9th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $104.00 price objective (down from $150.00) on shares of Root in a report on Thursday, February 26th. Zacks Research upgraded shares of Root from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Finally, Wall Street Zen raised shares of Root from a “sell” rating to a “hold” rating in a report on Saturday, February 28th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $97.80.

Root Trading Up 1.2%

The firm’s 50-day simple moving average is $55.22 and its 200 day simple moving average is $72.01. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.21 and a quick ratio of 1.21. The firm has a market capitalization of $681.53 million, a price-to-earnings ratio of 18.93 and a beta of 2.84.

Root (NASDAQ:ROOT) last announced its quarterly earnings data on Wednesday, February 25th. The company reported $0.31 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.28. The business had revenue of $397.00 million during the quarter, compared to the consensus estimate of $381.57 million. Root had a return on equity of 15.34% and a net margin of 2.58%.Root’s revenue for the quarter was up 21.5% on a year-over-year basis. During the same period in the prior year, the company earned $1.30 EPS. Equities analysts expect that Root, Inc. will post -0.08 earnings per share for the current year.

Institutional Trading of Root

A number of hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC grew its stake in shares of Root by 122.2% during the first quarter. AQR Capital Management LLC now owns 10,229 shares of the company’s stock worth $1,365,000 after buying an additional 5,626 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Root by 4.7% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company’s stock valued at $686,000 after purchasing an additional 229 shares in the last quarter. Swiss National Bank boosted its stake in shares of Root by 9.6% during the second quarter. Swiss National Bank now owns 17,100 shares of the company’s stock valued at $2,188,000 after purchasing an additional 1,500 shares in the last quarter. JPMorgan Chase & Co. boosted its position in Root by 389.3% during the 2nd quarter. JPMorgan Chase & Co. now owns 28,905 shares of the company’s stock worth $3,699,000 after buying an additional 22,997 shares during the period. Finally, Legal & General Group Plc grew its holdings in Root by 34.4% during the 2nd quarter. Legal & General Group Plc now owns 10,633 shares of the company’s stock worth $1,361,000 after acquiring an additional 2,722 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.