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

Shares of Root, Inc. (NASDAQ:ROOT) gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 changing hands.

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

Analyst Upgrades and Downgrades

ROOT has been the topic of a number of analyst reports. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $90.00 price objective (up previously from $82.00) on shares of Root in a research report on Tuesday, November 5th. UBS Group raised their target price on Root from $61.00 to $67.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. Wells Fargo & Company boosted their price target on shares of Root from $80.00 to $97.00 and gave the company an “equal weight” rating in a research report on Thursday. Citizens Jmp cut shares of Root from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 22nd. Finally, JMP Securities downgraded shares of Root from an “outperform” rating to a “market perform” rating in a research note on Friday, November 22nd. Five equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Root currently has a consensus rating of “Moderate Buy” and an average target price of $77.83.

Institutional Trading of Root

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in shares of Root by 16.2% during the fourth 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 last quarter. T. Rowe Price Investment Management Inc. purchased a new position in shares of Root during the 4th quarter worth approximately $29,661,000. Renaissance Technologies LLC increased its holdings in Root by 41.8% in the 4th quarter. Renaissance Technologies LLC now owns 263,515 shares of the company’s stock valued at $19,129,000 after purchasing an additional 77,699 shares during the last quarter. State Street Corp raised its position 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 position 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 valued at $9,286,000 after purchasing an additional 79,317 shares during the period. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Stock Up 25.6 %

The business has a 50 day simple moving average of $92.96 and a 200 day simple moving average of $70.57. The company has a market capitalization of $1.87 billion, a price-to-earnings ratio of -100.77 and a beta of 2.58. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.39 and a quick ratio of 1.39.

About Root

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.