Root Inc Stock Buy Hold or Sell Recommendation
| ROOT Stock | USD 97.65 6.48 7.11% |
Given the investment horizon of 90 days and your complete indifference towards market risk, our recommendation regarding Root Inc is 'Strong Hold'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Root Inc given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Root Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Root Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Root and provide practical buy, sell, or hold advice based on investors' constraints. Root Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
Root |
Execute Root Buy or Sell Advice
The Root recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Root Inc. Macroaxis does not own or have any residual interests in Root Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Root's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Root Trading Alerts and Improvement Suggestions
| Root Inc appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 455 M. Net Loss for the year was (147.4 M) with profit before overhead, payroll, taxes, and interest of 380.7 M. | |
| Root Inc currently holds about 886.1 M in cash with (33.6 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 62.55. | |
| Root Inc has a poor financial position based on the latest SEC disclosures | |
| Roughly 70.0% of the company shares are owned by institutional investors |
Root Returns Distribution Density
The distribution of Root's historical returns is an attempt to chart the uncertainty of Root's future price movements. The chart of the probability distribution of Root daily returns describes the distribution of returns around its average expected value. We use Root Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Root returns is essential to provide solid investment advice for Root.
| Mean Return | 0.63 | Value At Risk | -7.56 | Potential Upside | 7.11 | Standard Deviation | 4.51 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Root historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Root Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Root or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Root's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Root stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.62 | |
β | Beta against Dow Jones | -0.0054 | |
σ | Overall volatility | 4.51 | |
Ir | Information ratio | 0.12 |
Root Volatility Alert
Root Inc shows above-average downside volatility for the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Root's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Root's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Root Fundamentals Vs Peers
Comparing Root's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Root's direct or indirect competition across all of the common fundamentals between Root and the related equities. This way, we can detect undervalued stocks with similar characteristics as Root or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Root's fundamental indicators could also be used in its relative valuation, which is a method of valuing Root by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Root to competition |
| Fundamentals | Root | Peer Average |
| Return On Equity | -0.0521 | -0.31 |
| Return On Asset | 0.0148 | -0.14 |
| Profit Margin | (0.01) % | (1.27) % |
| Operating Margin | 0.11 % | (5.51) % |
| Current Valuation | 1 B | 16.62 B |
| Shares Outstanding | 10.7 M | 571.82 M |
| Shares Owned By Insiders | 5.44 % | 10.09 % |
| Shares Owned By Institutions | 70.10 % | 39.21 % |
| Number Of Shares Shorted | 1.64 M | 4.71 M |
| Price To Book | 6.85 X | 9.51 X |
| Price To Sales | 1.32 X | 11.42 X |
| Revenue | 455 M | 9.43 B |
| Gross Profit | 380.7 M | 27.38 B |
| EBITDA | (93.5 M) | 3.9 B |
| Net Income | (147.4 M) | 570.98 M |
| Cash And Equivalents | 886.1 M | 2.7 B |
| Cash Per Share | 62.55 X | 5.01 X |
| Total Debt | 299 M | 5.32 B |
| Debt To Equity | 0.58 % | 48.70 % |
| Current Ratio | 3.92 X | 2.16 X |
| Book Value Per Share | 12.13 X | 1.93 K |
| Cash Flow From Operations | (33.6 M) | 971.22 M |
| Short Ratio | 4.97 X | 4.00 X |
| Earnings Per Share | (1.15) X | 3.12 X |
| Price To Earnings To Growth | (0.01) X | 4.89 X |
| Target Price | 83.0 | |
| Number Of Employees | 680 | 18.84 K |
| Beta | 2.35 | -0.15 |
| Market Capitalization | 1.38 B | 19.03 B |
| Total Asset | 1.35 B | 29.47 B |
| Retained Earnings | (1.72 B) | 9.33 B |
| Net Asset | 1.35 B |
Note: Disposition of 1250 shares by Ulman Doug of Root subject to Rule 16b-3 [view details]
Root Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Root . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 58875.33 | |||
| Daily Balance Of Power | 0.6255 | |||
| Rate Of Daily Change | 1.07 | |||
| Day Median Price | 95.8 | |||
| Day Typical Price | 96.42 | |||
| Price Action Indicator | 5.09 | |||
| Period Momentum Indicator | 6.48 |
About Root Buy or Sell Advice
When is the right time to buy or sell Root Inc? Buying financial instruments such as Root Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Root in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Financials Thematic Idea Now
Financials
Companies that provide financial services to business or retail customers. The Financials theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Financials Theme or any other thematic opportunities.
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Additional Tools for Root Stock Analysis
When running Root's price analysis, check to measure Root's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Root is operating at the current time. Most of Root's value examination focuses on studying past and present price action to predict the probability of Root's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Root's price. Additionally, you may evaluate how the addition of Root to your portfolios can decrease your overall portfolio volatility.