Root, Inc. Q4 Earnings: Current Price Requires Exceptional Growth [Seeking Alpha]
Root, Inc. (ROOT)
Company Research
Source: Seeking Alpha
The company's proprietary model and lower fixed-cost structure could disrupt the industry. Root Q4 earnings were exceptionally strong; however, I believe the market has slightly overreacted to earnings as the current price requires growth that is unlikely to be achieved given the headwinds. I lower my rating on ROOT stock from Hold to Sell at a price target of $11-12. I am updating my previous analysis on Root, Inc. NASDAQ: ROOT ) in light of Q4 earnings and a price jump following a rating upgrade from Cantor to overweight. I previously rated Root a hold with balanced upside potential and downside risk for the following reasons: Root could leverage its proprietary model and lower fixed-cost structure to disrupt the industry. On the flip side, they had never turned a profit and were facing the worst auto insurance environment in 30 years. Valuation signals were pointing in both directions. Since then, Root is up 26%, beating the S&P 500 ( SP500 ) by 10 percentage point
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ROOT
News
- Root, Inc. (ROOT) Outpaces Stock Market Gains: What You Should Know [Yahoo! Finance]Yahoo! Finance
- Root, Inc. (NASDAQ: ROOT) had its "outperform" rating re-affirmed by analysts at Keefe, Bruyette & Woods. They now have a $70.00 price target on the stock, up previously from $22.00.MarketBeat
- Root, Inc. (ROOT) Rises As Market Takes a Dip: Key Facts [Yahoo! Finance]Yahoo! Finance
- Root, Inc. (NASDAQ: ROOT) had its "market outperform" rating re-affirmed by analysts at JMP Securities. They now have a $15.00 price target on the stock.MarketBeat
- Root, Inc. (ROOT) Gains As Market Dips: What You Should Know [Yahoo! Finance]Yahoo! Finance
ROOT
Earnings
- 2/21/24 - Beat
ROOT
Sec Filings
- 4/26/24 - Form DEFA14A
- 4/26/24 - Form ARS
- 4/26/24 - Form DEF
- ROOT's page on the SEC website