Root (NASDAQ:ROOT) Shares Gap Down After Analyst Downgrade

Root, Inc. (NASDAQ:ROOT) shares gapped down prior to trading on Thursday after Keefe, Bruyette & Woods lowered their price target on the stock from $75.00 to $70.00. The stock had previously closed at $57.15, but opened at $48.11. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Root shares last traded at $51.7660, with a volume of 54,106 shares trading hands.

ROOT has been the subject of several other research reports. Wells Fargo & Company lifted their price objective on Root from $47.00 to $53.00 and gave the stock an “equal weight” rating in a report on Thursday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Root in a report on Monday, October 26th. TD Cowen downgraded shares of Root from a “hold” rating to a “strong sell” rating in a report on Thursday, August 20th. Finally, Jefferies Financial Group lowered shares of Root from a “buy” rating to a “hold” rating and cut their target price for the stock from $78.00 to $58.00 in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Root has an average rating of “Hold” and an average price target of $57.75.

Trending Headlines about Root

Here are the key news stories impacting Root this week:

• Neutral Sentiment: Wells Fargo raised its price target to $53 from $47 but maintained an Equal Weight rating, suggesting limited conviction that the shares will outperform. Wells Fargo price target
• Neutral Sentiment: Root’s Q3 2026 earnings-call transcript was published, but the provided article information does not include specific management commentary or outlook that could explain the stock move. Q3 2026 earnings call transcript
• Negative Sentiment: Keefe, Bruyette & Woods lowered its price target to $70 from $75, a less optimistic valuation, although it kept an Outperform rating. KBW price target update

Hedge Funds Weigh In On Root

A number of large investors have recently modified their holdings of the company. State of Wyoming purchased a new stake in Root in the 3rd quarter worth approximately $289,000. Sequoia Financial Advisors LLC purchased a new position in shares of Root during the 2nd quarter valued at $219,000. Prosperitas Financial LLC grew its position in shares of Root by 4.4% during the 2nd quarter. Prosperitas Financial LLC now owns 27,411 shares of the company’s stock valued at $1,533,000 after purchasing an additional 1,149 shares in the last quarter. CoreCap Advisors LLC purchased a new position in shares of Root during the 2nd quarter valued at $42,000. Finally, Quantinno Capital Management LP bought a new position in shares of Root in the first quarter worth $920,000. 59.82% of the stock is currently owned by institutional investors.

Root Trading Down 6.3%

The stock has a market cap of $671.80 million, a P/E ratio of 9.13 and a beta of 3.06. The firm’s fifty day moving average price is $50.89 and its two-hundred day moving average price is $53.90. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.02.

Root (NASDAQ:ROOT) last announced its earnings results on Wednesday, November 4th. The company reported $0.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.23. Root had a net margin of 3.78% and a return on equity of 19.72%. The business had revenue of $381.30 million during the quarter, compared to analyst estimates of $384.43 million. As a group, equities research analysts forecast that Root, Inc. will post 4.46 EPS for the current year.

Root Company Profile

Root, Inc (NASDAQ:ROOT) is an insurance technology company that uses mobile technology and data-driven underwriting to provide personal insurance products. The company is best known for its automobile insurance, which is offered through a digital platform designed to allow customers to obtain quotes, purchase coverage and manage policies through a smartphone.

Root’s auto insurance model uses information collected through its mobile application, including driving-related data, to evaluate individual driving behavior and help determine eligibility and pricing.