Analyst Scoreboard: 5 Ratings For Root

Across the recent three months, 5 analysts have shared their insights on Root ROOT, expressing a variety of opinions spanning 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.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $73.4, with a high estimate of $88.00 and a low estimate of $61.00. Observing a downward trend, the current average is 6.85% lower than the prior average price target of $78.80.

Investigating Analyst Ratings: An Elaborate Study

The standing of Root among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Root. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Root compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Root's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Root's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Get to Know Root Better

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.

Unraveling the Financial Story of Root

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Root's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 286.63%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Root's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -2.7%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Root's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -4.92%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Root's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.53%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Root's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.98, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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