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

Root, Inc. (NASDAQ:ROOT - Get Free Report)'s stock price gapped up before the market opened 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 EPS for the quarter, beating the consensus estimate of ($0.63) by $1.93. Root had a negative net margin of 1.56% and a negative return on equity of 9.81%. The company had revenue of $326.70 million during the quarter, compared to analysts' expectations of $287.79 million.

Analysts Set New Price Targets

A number of research firms have issued reports on ROOT. Wells Fargo & Company reaffirmed a "buy" rating on shares of Root in a research report on Sunday. Citizens Jmp downgraded shares of Root from a "strong-buy" rating to a "hold" rating in a research note on Friday, November 22nd. Scotiabank reaffirmed a "sector perform" rating on shares of Root in a research report on Sunday. UBS Group lifted their price target on shares of Root from $61.00 to $67.00 and gave the stock a "neutral" rating in a research note on Monday, November 4th. Finally, JMP Securities cut Root from an "outperform" rating to a "market perform" rating in a research report on Friday, November 22nd. Five analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $77.83.

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Institutional Investors Weigh In On Root

A number of institutional investors and hedge funds have recently made changes to their positions in ROOT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Root by 3.6% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,912 shares of the company's stock valued at $357,000 after acquiring an additional 171 shares during the period. MetLife Investment Management LLC increased its holdings in shares of Root by 5.0% in the fourth quarter. MetLife Investment Management LLC now owns 5,382 shares of the company's stock valued at $391,000 after purchasing an additional 255 shares during the period. Legal & General Group Plc raised its stake in shares of Root by 3.6% during the fourth quarter. Legal & General Group Plc now owns 7,955 shares of the company's stock worth $577,000 after purchasing an additional 273 shares during the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of Root by 651.8% during the fourth quarter. Russell Investments Group Ltd. now owns 421 shares of the company's stock worth $31,000 after purchasing an additional 365 shares during the period. Finally, State Street Corp lifted its holdings in shares of Root by 0.3% during the third quarter. State Street Corp now owns 176,891 shares of the company's stock worth $6,683,000 after purchasing an additional 444 shares during the period. 59.82% of the stock is owned by hedge funds and other institutional investors.

Root Trading Down 5.6 %

The stock has a market capitalization of $1.93 billion, a PE ratio of -103.72 and a beta of 2.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 1.39 and a current ratio of 1.39. The business's 50-day moving average is $94.20 and its two-hundred day moving average is $71.54.

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.