Root, Inc. (NASDAQ:ROOT), the innovative insurance technology company, saw its stock price surge 5.16% during intraday trading on Thursday, following the release of its stellar first-quarter 2025 earnings report. The company's financial results significantly outperformed analyst expectations, demonstrating strong growth and a remarkable turnaround in profitability.
Root reported quarterly adjusted earnings of $1.07 per share, drastically surpassing the analyst consensus estimate of $0.34 per share. This represents a substantial beat of over 214% and a dramatic improvement from the $0.42 loss per share reported in the same quarter last year. The company's revenue also impressed, coming in at $349.4 million, exceeding analyst expectations of $318.9 million and marking a robust 37.1% year-over-year increase from $254.9 million.
The impressive quarterly results have caught the attention of Wall Street analysts. Wells Fargo maintained its Equal-Weight rating on Root but significantly raised its target price to $142 from $105, reflecting growing confidence in the company's future prospects. The strong performance and positive analyst sentiment have contributed to Root's stock gaining 92.8% year-to-date, signaling a potential turnaround for the once-struggling insurtech firm.
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