Root’s Stock Shoots Up After Price-Target Hikes: Here's How Retail's Reacting

Shares of Root, Inc. ($ROOT) surged over 4% late Monday morning following multiple price-target hikes from Wall Street analysts. 

UBS raised its target to $67 from $61 on the parent firm of Root Insurance, maintaining a ‘Neutral’ rating. 

Meanwhile, Wells Fargo analyst Elyse Greenspan increased her target on Root from $64 to $78 with an ‘Equal Weight’ rating, noting the company’s improved financial stability and growth potential, especially in its partnership channels.

Root last week reported a third-quarter (Q3) profit of $22.8 million, or $1.35 per share, dramatically beating analyst expectations for a loss of $0.93 per share. 

Revenue also doubled year-over-year, reaching $305.7 million, well above the estimated $272.8 million. 

Additionally, Root’s term loan restructuring with BlackRock reduces its principal to $200 million, with an extended six-year term, adding $150 million in available capital to fuel future growth.

“Root's outlook has improved now that the company has demonstrated an ability to generate an operating profit and the restructuring of the company's term loan facility and the decrease in interest relieves the pressure of capital constraints that were holding the company back from growing,” Wells argued.

On Stocktwits, Root has captured considerable retail attention, with its follower count climbing over 7% in the past week and message volume surging by 20,300%. 

As of 12:20 pm ET, Root was among the top 20 trending tickers. 

Retail investors are bullish, with one user predicting the stock is on its way to $150+.” 

Another suggested the strong Q3 results would spark further momentum buying.

Year-to-date, Root shares have skyrocketed 624%, vastly outperforming the broader S&P 500 and Nasdaq indices.

For updates and corrections, email newsroom@stocktwits.com

Read next: Will Amazon Stock Break $200 Soon? Retail Hopes High, Market Expert Sees ‘Stiff Resistance’

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