Root, Inc. (NASDAQ:ROOT) Receives Average Recommendation of “Hold” from Brokerages

Posted by Francis Steltz on Aug 9th, 2026

Shares of Root, Inc. (NASDAQ:ROOT – Get Free Report) have been given an average rating of “Hold” by the seven analysts that are presently covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $82.25.

Several equities research analysts recently weighed in on the stock. TD Cowen restated a “hold” rating on shares of Root in a research report on Wednesday, June 17th. Weiss Ratings upgraded shares of Root from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. Wells Fargo & Company boosted their target price on shares of Root from $58.00 to $61.00 and gave the stock an “equal weight” rating in a report on Thursday, July 9th. UBS Group set a $50.00 target price on shares of Root and gave the company a “neutral” rating in a research report on Monday, May 11th. Finally, Keefe, Bruyette & Woods lowered their price target on shares of Root from $95.00 to $80.00 and set an “outperform” rating for the company in a report on Thursday.

Get Our Latest Report on Root

Root News Roundup

Here are the key news stories impacting Root this week:

Positive Sentiment: Root reported second-quarter EPS of $1.49, well above the $0.83 analyst consensus. Profit increased 15%, supported by pricing discipline and improved underwriting margins. Root’s Q2 profit rises 15% on pricing discipline
Positive Sentiment: Management highlighted profitable growth, higher EBITDA and continued operating discipline during the earnings call. These trends suggest Root is prioritizing sustainable margins rather than unprofitable expansion. Root, Inc. Earnings Call Highlights Profitable Discipline
Positive Sentiment: Keefe, Bruyette & Woods maintained an “outperform” rating and still sees substantial upside, although it lowered its price target from $95 to $80. Root price target update
Neutral Sentiment: Root expects policies in force to be roughly flat year over year in 2026, while targeting a national footprint by the end of 2027. The expansion opportunity is meaningful, but near-term customer growth appears limited. Root 2026 policies and national footprint outlook
Negative Sentiment: Second-quarter revenue of $389.2 million fell short of the approximately $395.1 million estimate, despite rising 1.6% year over year. The revenue miss may temper the positive impact of the earnings beat. Zacks ROOT post-earnings analysis
Negative Sentiment: Analysts characterized ROOT’s valuation as demanding and sentiment as muted, suggesting a wait-and-see stance even as margins improve. Should You Buy, Sell or Hold ROOT Stock Post Q2 Earnings?

Root Stock Performance

NASDAQ:ROOT opened at $51.50 on Friday. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.02 and a quick ratio of 1.07. Root has a 1 year low of $40.91 and a 1 year high of $104.47. The stock’s 50 day simple moving average is $57.06 and its two-hundred day simple moving average is $55.20. The company has a market cap of $815.25 million, a price-to-earnings ratio of 14.55 and a beta of 2.89.

Root (NASDAQ:ROOT – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.66. The business had revenue of $389.20 million for the quarter, compared to analysts’ expectations of $395.14 million. Root had a return on equity of 19.72% and a net margin of 3.78%.The company’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same period in the prior year, the firm earned $1.29 EPS. As a group, equities analysts anticipate that Root will post 3.28 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Root

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CoreCap Advisors LLC bought a new stake in shares of Root in the 2nd quarter valued at approximately $42,000. Quantinno Capital Management LP bought a new position in shares of Root during the 1st quarter valued at approximately $920,000. First Trust Advisors LP raised its holdings in Root by 49.1% during the 1st quarter. First Trust Advisors LP now owns 68,050 shares of the company’s stock valued at $3,006,000 after buying an additional 22,422 shares during the period. Zweig DiMenna Associates LLC purchased a new stake in Root during the 1st quarter valued at $1,193,000. Finally, HB Wealth Management LLC lifted its position in Root by 122.2% in the first quarter. HB Wealth Management LLC now owns 47,248 shares of the company’s stock worth $2,087,000 after buying an additional 25,986 shares during the last quarter. 59.82% of the stock is currently owned by hedge funds and other institutional investors.

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.