Root (NASDAQ:ROOT) Releases Earnings Results, Beats Estimates By $1.96 EPS

Root (NASDAQ:ROOT) issued its earnings results on Wednesday. The company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.61) by $1.96, Briefing.com reports. Root had a negative net margin of 1.56% and a negative return on equity of 10.13%. The business had revenue of $305.70 million for the quarter, compared to analyst estimates of $272.77 million. During the same period in the prior year, the firm earned ($3.16) earnings per share. Root’s revenue was up 165.1% on a year-over-year basis.

Root Trading Up 3.8 %

Shares of Root stock traded up $2.62 during mid-day trading on Friday, hitting $71.01. 2,982,034 shares of the stock were exchanged, compared to its average volume of 924,070. Root has a 12 month low of $7.22 and a 12 month high of $118.15. The company has a 50-day simple moving average of $41.20 and a 200 day simple moving average of $51.33. The company has a debt-to-equity ratio of 1.98, a current ratio of 1.43 and a quick ratio of 1.43.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Wells Fargo & Company increased their price objective on shares of Root from $64.00 to $78.00 and gave the stock an “equal weight” rating in a research report on Friday. JMP Securities reiterated a “market outperform” rating and issued a $90.00 price target on shares of Root in a report on Tuesday, October 15th. Cantor Fitzgerald raised Root to a “strong-buy” rating in a research report on Thursday, October 3rd. Keefe, Bruyette & Woods reissued an “outperform” rating and issued a $82.00 price target (down previously from $88.00) on shares of Root in a research report on Friday, August 16th. Finally, UBS Group decreased their target price on shares of Root from $71.00 to $61.00 and set a “neutral” rating for the company in a research report on Tuesday, August 13th. Four research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Root presently has a consensus rating of “Moderate Buy” and an average target price of $57.38.

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.