Root (NASDAQ:ROOT) underwent analysis by 11 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 6 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 3 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 2 | 2 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $45.09, a high estimate of $90.00, and a low estimate of $12.00. This current average reflects an increase of 92.69% from the previous average price target of $23.40.
Exploring Analyst Ratings: An In-Depth Overview
An in-depth analysis of recent analyst actions unveils how financial experts perceive Root. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Thomas McJoynt-Griffith | Keefe, Bruyette & Woods | Raises | Outperform | $80.00 | $70.00 |
| Elyse Greenspan | Wells Fargo | Raises | Equal-Weight | $78.00 | $64.00 |
| Matthew Carletti | JMP Securities | Raises | Market Outperform | $90.00 | $15.00 |
| Thomas McJoynt-Griffith | Keefe, Bruyette & Woods | Raises | Outperform | $70.00 | $22.00 |
| Matthew Carletti | JMP Securities | Maintains | Market Outperform | $15.00 | - |
| Elyse Greenspan | Wells Fargo | Raises | Equal-Weight | $64.00 | $12.00 |
| Yaron Kinar | Jefferies | Raises | Buy | $40.00 | $10.00 |
| Thomas McJoynt-Griffith | Keefe, Bruyette & Woods | Raises | Outperform | $22.00 | $10.00 |
| Michael Ward | Citigroup | Raises | Neutral | $12.00 | $11.00 |
| Elyse Greenspan | Wells Fargo | Raises | Equal-Weight | $12.00 | $11.00 |
| Josh Siegler | Cantor Fitzgerald | Raises | Overweight | $13.00 | $9.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Root. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Root compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Root's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Root's market standing. Stay informed and make well-considered decisions with our Ratings Table.
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Delving into Root's Background
Root Inc develops and launches a direct-to-consumer personal automobile insurance and mobile technology company. The company is a direct-to-consumer personal auto insurance, renters insurance and mobile technology company. It generates revenue from the sale of auto insurance policies within the United States.
Root's Financial Performance
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Root showcased positive performance, achieving a revenue growth rate of 263.62% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Root's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.43%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Root's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.74%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Root's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.45%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.81, caution is advised due to increased financial risk.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.