Root (NASDAQ:ROOT) Shares Down 6.7% – Here’s Why

Posted by Geri Gentry on May 21st, 2026

Root, Inc. (NASDAQ:ROOT – Get Free Report)’s stock price fell 6.7% on Tuesday . The company traded as low as $54.39 and last traded at $54.3850. 89,251 shares traded hands during trading, a decline of 73% from the average session volume of 326,406 shares. The stock had previously closed at $58.32.

Analyst Ratings Changes

ROOT has been the subject of a number of recent analyst reports. Keefe, Bruyette & Woods decreased their price objective on shares of Root from $104.00 to $95.00 and set an “outperform” rating for the company in a research note on Tuesday, April 7th. Wells Fargo & Company lifted their target price on shares of Root from $52.00 to $58.00 and gave the company an “equal weight” rating in a research note on Thursday, May 7th. UBS Group set a $50.00 target price on shares of Root and gave the company a “neutral” rating in a research note on Monday, May 11th. Weiss Ratings upgraded Root from a “sell (d+)” rating to a “hold (c)” rating in a report on Thursday, February 26th. Finally, Zacks Research lowered Root from a “hold” rating to a “strong sell” rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $93.20.

View Our Latest Report on ROOT

Root Stock Performance

The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.07 and a current ratio of 1.07. The firm’s 50 day moving average is $49.99 and its 200-day moving average is $63.44. The firm has a market cap of $915.53 million, a price-to-earnings ratio of 17.32 and a beta of 2.95.

Root (NASDAQ:ROOT – Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The company reported $2.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.84 by $1.25. Root had a net margin of 3.58% and a return on equity of 19.97%. The business had revenue of $393.50 million during the quarter, compared to analyst estimates of $398.16 million. During the same quarter in the previous year, the business earned $1.07 EPS. Root’s quarterly revenue was up 12.5% compared to the same quarter last year. Sell-side analysts anticipate that Root, Inc. will post 2.15 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Root

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. T. Rowe Price Investment Management Inc. lifted its holdings in Root by 8.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 946,632 shares of the company’s stock worth $68,376,000 after purchasing an additional 74,427 shares during the last quarter. Vanguard Group Inc. lifted its position in Root by 25.9% during the 3rd quarter. Vanguard Group Inc. now owns 724,541 shares of the company’s stock worth $64,854,000 after acquiring an additional 149,064 shares during the last quarter. Capital Research Global Investors lifted its position in Root by 31.7% during the 4th quarter. Capital Research Global Investors now owns 654,252 shares of the company’s stock worth $47,257,000 after acquiring an additional 157,654 shares during the last quarter. Geode Capital Management LLC lifted its position in Root by 4.1% during the 4th quarter. Geode Capital Management LLC now owns 310,967 shares of the company’s stock worth $22,466,000 after acquiring an additional 12,238 shares during the last quarter. Finally, State Street Corp lifted its position in Root by 5.0% during the 4th quarter. State Street Corp now owns 258,168 shares of the company’s stock worth $18,647,000 after acquiring an additional 12,321 shares during the last quarter. 59.82% of the stock is currently owned by institutional investors and hedge funds.

Root Company Profile

(Get Free Report)

Root, trading on the Nasdaq under the ticker ROOT, is a Columbus, Ohio–based insurance company that leverages mobile technology and data analytics to offer personalized auto insurance policies. Founded in 2015 by Alex Timm and Dan Manges, Root set out to transform traditional underwriting by focusing on individual driving behavior rather than broad demographic factors.

The company’s core product is usage-based auto insurance, delivered through a smartphone app that monitors driving patterns such as speed, braking and phone usage behind the wheel.