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

Root (NASDAQ:ROOT) issued its quarterly earnings data on Wednesday. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.08, FiscalAI reports. Root had a net margin of 6.02% and a return on equity of 38.24%. The firm had revenue of $387.80 million during the quarter, compared to analysts’ expectations of $363.06 million. During the same period in the prior year, the company posted $1.35 earnings per share. Root’s revenue for the quarter was up 26.9% on a year-over-year basis.

Root Stock Up 12.2%

Shares of ROOT opened at $88.82 on Thursday. The company has a 50-day simple moving average of $87.96 and a 200-day simple moving average of $112.65. The firm has a market capitalization of $1.37 billion, a P/E ratio of 17.73 and a beta of 2.21. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.26 and a current ratio of 1.26. Root has a 52 week low of $68.48 and a 52 week high of $181.14.

Insider Transactions at Root

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Engineers Gate Manager LP boosted its stake in Root by 380.4% during the second quarter. Engineers Gate Manager LP now owns 59,104 shares of the company’s stock worth $7,564,000 after buying an additional 46,800 shares in the last quarter. Qube Research & Technologies Ltd bought a new position in shares of Root during the 2nd quarter worth about $5,993,000. Federated Hermes Inc. boosted its position in shares of Root by 50,331.5% during the 2nd quarter. Federated Hermes Inc. now owns 36,815 shares of the company’s stock valued at $4,711,000 after acquiring an additional 36,742 shares in the last quarter. Marshall Wace LLP increased its stake in Root by 70.0% in the second quarter. Marshall Wace LLP now owns 29,809 shares of the company’s stock valued at $3,815,000 after acquiring an additional 12,276 shares during the period. Finally, JPMorgan Chase & Co. raised its position in Root by 389.3% in the second quarter. JPMorgan Chase & Co. now owns 28,905 shares of the company’s stock worth $3,699,000 after purchasing an additional 22,997 shares in the last quarter. 59.82% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have recently issued reports on ROOT. UBS Group reiterated a “neutral” rating and set a $105.00 price target (down previously from $140.00) on shares of Root in a research note on Monday, August 18th. Jefferies Financial Group reduced their target price on Root from $172.00 to $138.00 and set a “buy” rating for the company in a report on Monday, August 11th. Wall Street Zen cut Root from a “buy” rating to a “hold” rating in a research report on Saturday, August 2nd. Zacks Research lowered shares of Root from a “hold” rating to a “strong sell” rating in a research report on Tuesday, October 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $124.40.

Root Company Profile

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.