Root Inc (ROOT)

[jgrabar]

Current Root, Inc. shareholders who have held shares of the Company’s stock since at least October 28, 2020, can seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.

According to an underlying class action complaint, on or around October 27, 2020, Root conducted its initial public offering (“IPO”), selling 26.8 million shares of common stock priced at $27.00 per share. Then, on March 9, 2021, BofA Securities analyst Joshua Shanker initiated coverage of Root with an “Underperform” rating on the premise that the Company is unlikely to be cash flow positive until 2027, finding that Root “will require not insignificant cash infusions from the capital markets to bridge its cash flow needs.” On this news, Root’s stock price fell $0.18 per share, or 1.46%, to close at $12.17 per share on March 9, 2021, representing a total decline of 54.93% from the offering price.

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