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6 analysts have expressed a variety of opinions on Root (NASDAQ:ROOT) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 2 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 2 | 2 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Root, presenting an average target of $27.17, a high estimate of $64.00, and a low estimate of $12.00. Marking an increase of 158.76%, the current average surpasses the previous average price target of $10.50.
Analyzing Analyst Ratings: A Detailed Breakdown
A clear picture of Root's perception among financial experts is painted 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 |
|---|---|---|---|---|---|
| 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: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Root. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Root compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Root's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Root's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Root analyst ratings.
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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.
Understanding the Numbers: Root's Finances
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Over the 3 months period, Root showcased positive performance, achieving a revenue growth rate of 173.21% as of 31 December, 2023. 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 standards, pointing towards difficulties in achieving strong profitability. With a net margin of -12.32%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): Root's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -14.0%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Root's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.85%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Root's debt-to-equity ratio surpasses industry norms, standing at 1.76. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and 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.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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