7 analysts have shared their evaluations of Root (NASDAQ:ROOT) during the recent three months, expressing a mix of bullish and bearish perspectives.
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 | 0 | 4 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 3 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $64.0, along with a high estimate of $90.00 and a low estimate of $15.00. Observing a 97.96% increase, the current average has risen from the previous average price target of $32.33.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of Root among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Andrew Kligerman | TD Cowen | Raises | Hold | $51.00 | $11.00 |
| 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 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Root. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Root compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Root's stock. This analysis reveals shifts in analysts' expectations over time.
For valuable insights into Root's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
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About Root
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 Economic Impact: An Analysis
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Root's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 263.62%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the 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): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -3.74%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.45%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: Root's debt-to-equity ratio surpasses industry norms, standing at 1.81. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
How Are Analyst Ratings Determined?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.