Root (NASDAQ:ROOT) Announces Earnings Results, Beats Expectations By $0.08 EPS

Root (NASDAQ:ROOT) issued its quarterly earnings results on Wednesday. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.43) by $0.08, FiscalAI reports. The firm had revenue of $387.80 million during the quarter, compared to analyst estimates of $363.06 million. Root had a net margin of 3.80% and a return on equity of 24.38%. Root’s revenue for the quarter was up 26.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.35 earnings per share.

Root Stock Performance

Shares of NASDAQ ROOT opened at $81.01 on Friday. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.82. The firm’s 50-day moving average price is $87.78 and its two-hundred day moving average price is $112.43. Root has a 52-week low of $68.48 and a 52-week high of $181.14. The stock has a market capitalization of $1.25 billion, a P/E ratio of 24.47 and a beta of 2.21.

Analysts Set New Price Targets

ROOT has been the subject of a number of research analyst reports. Zacks Research downgraded Root from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 7th. Jefferies Financial Group dropped their price target on Root from $172.00 to $138.00 and set a “buy” rating for the company in a research note on Monday, August 11th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a research note on Wednesday, October 8th. Keefe, Bruyette & Woods cut their price target on shares of Root from $170.00 to $165.00 and set an “outperform” rating on the stock in a report on Friday, August 8th. Finally, UBS Group reissued a “neutral” rating and issued a $105.00 price objective (down previously from $140.00) on shares of Root in a research report on Monday, August 18th. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Root currently has an average rating of “Hold” and a consensus price target of $125.80.

Insiders Place Their Bets

In other news, insider Mahtiyar Bonakdarpour sold 5,750 shares of the business’s stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $89.74, for a total transaction of $516,005.00. Following the completion of the transaction, the insider owned 274,226 shares of the company’s stock, valued at approximately $24,609,041.24. The trade was a 2.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Alexander E. Timm sold 10,861 shares of the company’s stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $88.88, for a total transaction of $965,325.68. Following the transaction, the chief executive officer owned 157,748 shares of the company’s stock, valued at $14,020,642.24. This represents a 6.44% decrease in their position. The disclosure for this sale is available in the SEC filing. 11.76% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Root

Large investors have recently made changes to their positions in the company. Gilder Gagnon Howe & Co. LLC boosted its position in shares of Root by 3.0% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 6,225 shares of the company’s stock worth $797,000 after buying an additional 181 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Root by 4.7% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,141 shares of the company’s stock valued at $686,000 after acquiring an additional 229 shares in the last quarter. Russell Investments Group Ltd. raised its stake in Root by 511.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 734 shares of the company’s stock valued at $94,000 after acquiring an additional 614 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in Root by 24.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 3,805 shares of the company’s stock worth $487,000 after acquiring an additional 736 shares during the period. Finally, New York State Common Retirement Fund grew its stake in shares of Root by 29.6% in the second quarter. New York State Common Retirement Fund now owns 3,500 shares of the company’s stock worth $448,000 after purchasing an additional 800 shares in the last quarter. Institutional investors and hedge funds own 59.82% of the company’s stock.

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.