Root, Inc. (NASDAQ:ROOT), a technology-driven auto insurer that leverages telematics to offer personalized insurance rates based on driving behavior, operates within the competitive Zacks Insurance - Property and Casualty industry. It has consistently outperformed consensus revenue estimates over the past four quarters.
On August 18, 2025, UBS adjusted its rating for ROOT to Neutral, maintaining a hold action. At that time, ROOT's stock price was $88.99. UBS also revised ROOT's price target, lowering it from $140 to $105, as highlighted by TheFly. This adjustment comes amid Root's significant financial turnaround in the second quarter of fiscal 2025.
Root reported a net income of $22 million for the second quarter, marking a return to profitability from a loss of $7.8 million in the same quarter of 2024. Earnings per share (EPS) were $1.29, surpassing the consensus estimate of $0.56. This performance reflects a substantial improvement from the previous year's loss of $0.52 per share, with an earnings surprise of +21.70%.
Revenue for the quarter reached $382.9 million, a 32.4% increase from the previous year, although it fell slightly short of analyst expectations by $1.17 million. Despite this, Root's revenue exceeded the Zacks Consensus Estimate by 13.62%. The company has consistently surpassed consensus revenue estimates in the last four quarters, demonstrating its strong market position.
Currently, ROOT's stock is trading at approximately $90.20, experiencing a slight decrease of about 0.25%, equivalent to a drop of $0.23. Throughout the day, the stock has fluctuated between a low of $88.49 and a high of $90.64. Over the past year, ROOT's stock has reached a high of $181.14 and a low of $34.04, with a market capitalization of approximately $1.23 billion.
