Root, Inc. (NASDAQ:ROOT) Receives Average Recommendation of “Hold” from Analysts

Root, Inc. (NASDAQ:ROOT) has earned a consensus recommendation of “Hold” from the seven analysts that are covering the stock, Marketbeat reports. Five research analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $82.25.

A number of equities research analysts have issued reports on ROOT shares. Wells Fargo & Company increased their price objective on shares of Root from $58.00 to $61.00 and gave the company an “equal weight” rating in a report on Thursday, July 9th. TD Cowen restated a “hold” rating on shares of Root in a research report on Wednesday, June 17th. Keefe, Bruyette & Woods cut their target price on shares of Root from $95.00 to $80.00 and set an “outperform” rating for the company in a research note on Thursday. Zacks Research upgraded shares of Root from a “strong sell” rating to a “hold” rating in a report on Monday, June 8th. Finally, Weiss Ratings upgraded shares of Root from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, July 28th.

More Root News

Here are the key news stories impacting Root this week:

• Positive Sentiment: Root reported strong profitability in the second quarter, with earnings per share exceeding analyst expectations. Profit increased approximately 15%, supported by pricing discipline, improved underwriting margins and higher EBITDA. Root earnings call highlights
• Positive Sentiment: Management emphasized continued operating discipline and profitability, while maintaining a goal of reaching a national insurance footprint by the end of 2027. Root growth outlook
• Positive Sentiment: Keefe, Bruyette & Woods retained an “outperform” rating, indicating it still sees substantial long-term upside for ROOT even after reducing its price target to $80 from $95. Analyst rating report
• Neutral Sentiment: The earnings release highlighted the company’s quarterly results and shareholder materials, with investors looking to management commentary for further details on underwriting performance and expansion plans. Root second-quarter results
• Negative Sentiment: Quarterly revenue came in below consensus estimates, despite year-over-year growth and an EPS beat. The revenue shortfall appears to have outweighed the profitability improvement in the market’s initial reaction. Root second-quarter earnings report
• Negative Sentiment: Root expects policies in force to be relatively flat year over year in 2026, raising concerns that near-term customer and premium growth may remain limited. Analysts also cite ROOT’s premium valuation and generally muted sentiment as reasons for caution. Zacks ROOT post-earnings analysis

Institutional Investors Weigh In On Root

A number of hedge funds have recently made changes to their positions in ROOT. CoreCap Advisors LLC bought a new stake in Root in the 2nd quarter worth approximately $42,000. Russell Investments Group Ltd. raised its position in shares of 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 buying an additional 614 shares in the last quarter. Advisory Services Network LLC purchased a new stake in shares of Root during the 3rd quarter valued at about $144,000. Tower Research Capital LLC TRC lifted its holdings in shares of Root by 237.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,278 shares of the company’s stock valued at $164,000 after acquiring an additional 899 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank bought a new position in shares of Root in the 3rd quarter valued at about $194,000. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

Root Stock Performance

NASDAQ:ROOT opened at $50.51 on Friday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.61. Root has a 12-month low of $40.91 and a 12-month high of $119.50. The stock has a 50-day moving average price of $57.07 and a 200 day moving average price of $55.23. The stock has a market capitalization of $799.57 million, a P/E ratio of 14.27 and a beta of 2.89.

Root (NASDAQ:ROOT) last issued its earnings results on Wednesday, August 5th. The company reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.66. Root had a return on equity of 20.33% and a net margin of 3.78%.The company had revenue of $389.20 million for the quarter, compared to the consensus estimate of $395.14 million. During the same quarter last year, the company earned $1.29 EPS. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. Equities research analysts forecast that Root will post 3.28 EPS for the current fiscal year.

About Root

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.