Jefferies has recently raised Root Inc (ROOT) stock to Buy rating, as announced on March 1, 2024, according to Finviz. Earlier, on February 26, 2024, Keefe Bruyette had raised the stock from a Mkt Perform to Outperform, setting a price target of $22 for ROOT stock. Cantor Fitzgerald also raised Overweight rating with a price target of $13. Additionally, TD Cowen initiated Market Perform rating on January 10, 2024. Jefferies analysts, in their report published on November 19, 2021, also initiated Hold rating for Root Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Root Inc (ROOT) Stock Trading Recap
On Friday, Root Inc (ROOT) stock saw a decline, ending the day at $42.74 which represents a decrease of $-1.76 or -3.96% from the prior close of $44.5. The stock opened at $44.74 and touched a low of $40.53 during the day, reaching a high of $46.73. The volume of shares traded was 0.57 million exceeding the average volume of 0.28 million.
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ROOT Stock Performance and Moving Averages
In recent trading, Root Inc (ROOT) stock price has shown some volatility, fluctuating 7.17% over the last five trades and 14.99% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -36.00%, and it has plunged by -43.84% in the previous three months. Currently, ROOT is trading at 8.52%, 0.33%, and -2.58% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ROOT, a Financial sector stock, is trading -50.63% below its 52-week high but remains 491.97% above its 52-week low. The Average True Range (ATR) (14 days) of 2.98 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Root Inc’s Profitability and Valuation Ratios
Root Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -3.90% and a profit margin of -9.81%, with a gross margin of -36.00%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Root Inc’s market capitalization stands at $641.10 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 0.75, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.24, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 49.45% of Root Inc (ROOT)’s shares, while financial institutions hold 34.83%.
