7 Analysts Have This To Say About Root

Throughout the last three months, 7 analysts have evaluated Root ROOT, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Root and provided 12-month price targets. The average target is $134.86, accompanied by a high estimate of $170.00 and a low estimate of $97.00. Observing a 34.1% increase, the current average has risen from the previous average price target of $100.57.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Root by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Root. This information provides 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.

Capture valuable insights into Root's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Root analyst ratings.

Delving into Root's Background

Root Inc develops and launches a direct-to-consumer personal automobile insurance and mobile technology company. It generates revenue from the sales of auto insurance policies within the United States.

A Deep Dive into Root's Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Root's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 67.71% as of 31 December, 2024, showcasing a substantial increase in 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.76% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Root's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 11.46%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Root's ROA excels beyond industry benchmarks, reaching 1.45%. This signifies efficient management of assets and strong financial health.

Debt Management: Root's debt-to-equity ratio surpasses industry norms, standing at 0.98. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.