Royal Bank of Canada Reiterates “Sector Perform” Rating for Root (NASDAQ:ROOT)

Root (NASDAQ:ROOT)‘s stock had its “sector perform” rating restated by Royal Bank of Canada in a research note issued on Tuesday, Benzinga reports. They presently have a $3.00 price objective on the stock. Royal Bank of Canada’s target price points to a potential downside of 71.40% from the stock’s previous close.

A number of other equities research analysts have also weighed in on the company. Citigroup boosted their price objective on Root from $5.00 to $11.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 23rd. UBS Group boosted their price objective on Root from $6.00 to $10.00 and gave the stock a “neutral” rating in a research report on Monday, August 28th. One analyst has rated the stock with a sell rating, eight have given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $7.91.

Root Stock Performance

ROOT traded down $0.09 during trading on Tuesday, hitting $10.49. The stock had a trading volume of 35,384 shares, compared to its average volume of 241,969. The company has a 50 day moving average price of $10.48 and a 200-day moving average price of $7.25. The firm has a market cap of $152.11 million, a price-to-earnings ratio of -0.75 and a beta of 1.53. Root has a one year low of $3.31 and a one year high of $14.80. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.82 and a quick ratio of 1.82.

Root (NASDAQ:ROOT) last announced its quarterly earnings data on Wednesday, August 2nd. The company reported ($2.55) earnings per share for the quarter, beating the consensus estimate of ($3.00) by $0.45. The firm had revenue of $74.80 million during the quarter, compared to analysts’ expectations of $73.00 million. Root had a negative return on equity of 75.00% and a negative net margin of 68.96%. As a group, research analysts predict that Root will post -11.38 EPS for the current year.

Insider Buying and Selling at Root

In other news, CTO Mahtiyar Bonakdarpour acquired 9,485 shares of Root stock in a transaction on Tuesday, August 22nd. The stock was acquired at an average cost of $8.99 per share, with a total value of $85,270.15. Following the completion of the acquisition, the chief technology officer now owns 292,550 shares in the company, valued at $2,630,024.50. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 10.34% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Root

Large investors have recently made changes to their positions in the stock. UBS Group AG raised its position in shares of Root by 134.8% in the fourth quarter. UBS Group AG now owns 7,897 shares of the company’s stock worth $35,000 after buying an additional 4,533 shares in the last quarter. Raymond James Financial Services Advisors Inc. purchased a new stake in shares of Root in the second quarter worth $90,000. CIBC Asset Management Inc purchased a new stake in shares of Root in the first quarter worth $47,000. Delphia USA Inc. purchased a new stake in shares of Root in the fourth quarter worth $49,000. Finally, Squarepoint Ops LLC purchased a new stake in shares of Root in the fourth quarter worth $55,000. 60.87% of the stock is owned by institutional investors.

Root Company Profile

Root, Inc provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies.