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

Root (NASDAQ:ROOT) issued its quarterly earnings data 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. The firm had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $272.77 million. Root had a negative return on equity of 50.80% and a negative net margin of 9.81%. Root’s revenue was up 165.1% on a year-over-year basis. During the same period in the previous year, the firm posted ($3.16) earnings per share.

Root Trading Up 59.1 %

Shares of NASDAQ ROOT traded up $23.91 on Thursday, reaching $64.40. 12,948,196 shares of the company traded hands, compared to its average volume of 519,752. The stock has a market capitalization of $966.00 million, a PE ratio of -13.57 and a beta of 2.53. Root has a fifty-two week low of $7.22 and a fifty-two week high of $118.15. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 1.98. The company has a 50 day moving average of $40.25 and a 200 day moving average of $51.16.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on ROOT shares. UBS Group cut their price target on Root from $71.00 to $61.00 and set a “neutral” rating for the company in a research note on Tuesday, August 13th. Wells Fargo & Company dropped their price objective on shares of Root from $71.00 to $64.00 and set an “equal weight” rating for the company in a research note on Thursday, October 10th. Keefe, Bruyette & Woods reaffirmed an “outperform” rating and issued a $82.00 target price (down previously from $88.00) on shares of Root in a research note on Friday, August 16th. Jefferies Financial Group dropped their price target on Root from $84.00 to $72.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. Finally, JMP Securities restated a “market outperform” rating and issued a $90.00 price objective on shares of Root in a research report on Tuesday, October 15th. Four research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Root presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.63.

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.