why Root Inc. [ROOT] is a Good Choice for Investors After New Price Target of $3.64

Root Inc. [NASDAQ: ROOT] gained 9.77% on the last trading session, reaching $1.46 price per share at the time. The company report on June 13, 2022 that Root, Inc. Set to Join Russell 3000® Index.

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Root, Inc. (NASDAQ: ROOT), a leading technology company powering insurance solutions and the parent company of Root Insurance, is set to join the broad-market Russell 3000® Index at the conclusion of the 2022 Russell indexes annual reconstitution, effective after the U.S. market opens on June 27, 2022 according to a preliminary list of additions posted June 3, 2022 by FTSE Russell.

Annual Russell indexes reconstitution captures the 4,000 largest U.S. stocks as of May 6, 2022, ranking them by total market capitalization. Membership in the U.S. all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes.

Root Inc. represents 251.70 million in outstanding shares, while the company has a total market value of $347.96 million with the latest information. ROOT stock price has been found in the range of $1.34 to $1.52.

If compared to the average trading volume of 2.65M shares, ROOT reached a trading volume of 3544893 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Root Inc. [ROOT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ROOT shares is $3.64 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ROOT stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Jefferies have made an estimate for Root Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on November 19, 2021. While these analysts kept the previous recommendation, Barclays dropped their target price from $5 to $3. The new note on the price target was released on November 15, 2021, representing the official price target for Root Inc. stock. Previously, the target price had yet another raise to $5, while Wolfe Research analysts kept a Peer Perform rating on ROOT stock. On August 13, 2021, analysts decreased their price target for ROOT shares from 16 to 7.

The Average True Range (ATR) for Root Inc. is set at 0.13, with the Price to Sales ratio for ROOT stock in the period of the last 12 months amounting to 0.96. The Price to Book ratio for the last quarter was 0.78, with the Price to Cash per share for the same quarter was set at 3.92.

Trading performance analysis for ROOT stock

Root Inc. [ROOT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.87. With this latest performance, ROOT shares gained by 20.66% in over the last four-week period, additionally sinking by -53.80% over the last 6 months – not to mention a drop of -86.47% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ROOT stock in for the last two-week period is set at 55.83, with the RSI for the last a single of trading hit 62.91, and the three-weeks RSI is set at 51.72 for Root Inc. [ROOT]. The present Moving Average for the last 50 days of trading for this stock 1.4712, while it was recorded at 1.3040 for the last single week of trading, and 2.9507 for the last 200 days.

Root Inc. [ROOT]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ROOT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Root Inc. go to 41.30%.

An analysis of insider ownership at Root Inc. [ROOT]

There are presently around $133 million, or 68.80% of ROOT stock, in the hands of institutional investors. The top three institutional holders of ROOT stocks are: RIBBIT CAPITAL GP IV, LTD. with ownership of 29,487,539, which is approximately New of the company’s market cap and around 6.90% of the total institutional ownership; SILVER LAKE GROUP, L.L.C., holding 9,259,259 shares of the stock with an approximate value of $12.31 million in ROOT stocks shares; and SCHUSTERMAN INTERESTS, LLC, currently with $11.64 million in ROOT stock with ownership of nearly 0% of the company’s market capitalization.

63 institutional holders increased their position in Root Inc. [NASDAQ:ROOT] by around 48,107,273 shares. Additionally, 48 investors decreased positions by around 22,238,609 shares, while 24 investors held positions by with 29,819,394 shares. The mentioned changes placed institutional holdings at 100,165,276 shares, according to the latest SEC report filing. ROOT stock had 31 new institutional investments in for a total of 41,684,398 shares, while 22 institutional investors sold positions of 3,348,282 shares during the same period.


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