Root (ROOT) is a popular auto-insurance company that made its stock market debut last October. While the stock gained 22.7% over the past month—perhaps due to being caught up in the meme stock craze because of its high short interest—it has declined 36.2% over the past six months because of investors’ concerns over its shaky financials. So, will ROOT be able to maintain its recent momentum as it takes steps to strengthen its business operations? Read more to find out.Auto insurer Root, Inc. (ROOT), which uses data and artificial intelligence (AI) to determine rates for its customers, made its stock market debut in October last year through an initial public offering of two million shares. ROOT’s IPO has been hailed as the largest IPO in Ohio so far and the largest Insurtech IPO in 2020.
Shares of ROOT began trading at $27, above its $22 - $25 target range. The company raised $724.40 million through the IPO.
While the stock surged 9.2% during its first trading session to hit an all-time high of $29.48, it thereafter declined on concerns over the company’s weak financials before surging again over the past month. While the stock has declined 36.2% over the past six months, it has advanced 22.7% over the past month, perhaps on the meme stock craze. The stock may have been targeted by the Reddit forum because 28.53% of its float has been sold short.