UBS Group Issues Pessimistic Forecast for Root (NASDAQ:ROOT) Stock Price

Root (NASDAQ:ROOT) had its price target reduced by stock analysts at UBS Group from $90.00 to $52.00 in a report issued on Monday,Benzinga reports. The firm presently has a “neutral” rating on the stock. UBS Group’s price objective indicates a potential upside of 15.02% from the company’s current price.

Several other research analysts have also recently weighed in on the company. Zacks Research raised Root from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Weiss Ratings upgraded shares of Root from a “sell (d+)” rating to a “hold (c)” rating in a research report on Thursday, February 26th. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $104.00 price target (down from $150.00) on shares of Root in a report on Thursday, February 26th. Wells Fargo & Company reduced their price objective on shares of Root from $75.00 to $70.00 and set an “equal weight” rating for the company in a research report on Thursday, February 26th. Finally, Wall Street Zen raised shares of Root from a “sell” rating to a “hold” rating in a research note 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 data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $97.80.

Root Price Performance

ROOT traded down $2.77 during trading on Monday, reaching $45.21. The stock had a trading volume of 479,731 shares, compared to its average volume of 343,743. The firm has a market capitalization of $701.16 million, a price-to-earnings ratio of 19.49 and a beta of 2.84. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.70. Root has a 1-year low of $44.02 and a 1-year high of $181.14. The stock has a 50 day moving average of $64.22 and a two-hundred day moving average of $77.31.

Root (NASDAQ:ROOT) last issued its quarterly earnings results on Wednesday, February 25th. The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.28. Root had a return on equity of 15.34% and a net margin of 2.58%.The firm had revenue of $397.00 million during the quarter, compared to analyst estimates of $381.57 million. During the same period last year, the company posted $1.30 EPS. The firm’s quarterly revenue was up 21.5% on a year-over-year basis. As a group, equities analysts anticipate that Root will post -0.08 EPS for the current fiscal year.

Institutional Investors Weigh In On Root

Hedge funds have recently made changes to their positions in the company. Ensign Peak Advisors Inc acquired a new stake in shares of Root during the 2nd quarter valued at $33,829,000. Millennium Management LLC increased its stake in shares of Root by 780.1% in the fourth quarter. Millennium Management LLC now owns 220,815 shares of the company’s stock worth $15,949,000 after acquiring an additional 195,725 shares during the last quarter. UBS Group AG increased its stake in shares of Root by 372.1% in the third quarter. UBS Group AG now owns 228,738 shares of the company’s stock worth $20,474,000 after acquiring an additional 180,289 shares during the last quarter. Findell Capital Management LLC raised its holdings in shares of Root by 291.7% during the fourth quarter. Findell Capital Management LLC now owns 235,000 shares of the company’s stock worth $16,974,000 after acquiring an additional 175,000 shares in the last quarter. Finally, Capital Research Global Investors raised its holdings in shares of Root by 31.7% during the fourth quarter. Capital Research Global Investors now owns 654,252 shares of the company’s stock worth $47,257,000 after acquiring an additional 157,654 shares in the last quarter. Hedge funds and other institutional investors 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.