Root, Inc. Class A (ROOT)

Root, Inc.'s stock has experienced notable events and fluctuations over the past six months (July 2025 - January 2026). In Q2 2025, Root reported earnings per share (EPS) of $1.29 and revenue of $382.9 million, surpassing expectations, but the stock fell by 2.38% in aftermarket trading. The company's Q3 2025 earnings also surpassed market expectations, leading to a 12.17% after-hours stock surge. Analyst ratings have varied, with Wells Fargo lowering its price target for ROOT from $96.00 to $75.00 in January 2026, while maintaining an "Equal-Weight" rating. As of January 14, 2026, the stock has a consensus "Hold" rating from eight firms, with an average 12-month price target of $121.60. The stock price has shown a decline of 40.27% over the past six months and 12.44% over the past year.

Root, Inc. experiences demand seasonality for its products and services. The first quarter (Q1) is typically the strongest for marketing spend and customer acquisition. The company anticipates an increase in loss ratios during the second and third quarters (Q2 and Q3), which are often associated with storm seasons. Root's management focuses on optimizing for the net present value (NPV) of its business, which can lead to higher investments in Q1 for its direct channel.

Root, Inc. is an insurtech company founded in 2015 that aims to revolutionize the car insurance industry by leveraging mobile technology, data science, and artificial intelligence to offer personalized insurance rates. The company's core products include automobile insurance, and it also offers renters and homeowners insurance, utilizing a direct-to-consumer model.

Headquartered in Columbus, Ohio, Root, Inc. provides its insurance products and services across 35 U.S. states, with its largest markets including Texas, Georgia, and Colorado.

Root's brand reputation in the past year has been largely centered on its innovative approach to insurance, emphasizing its use of data science, AI, and machine learning to provide fair, personalized rates and a streamlined mobile app experience. The company positions itself as a leading auto insurtech, aiming to disrupt the traditional insurance industry. While there haven't been specific negative events widely reported, the company's stock volatility and the cautious sentiment from some analysts could indirectly influence public perception.

Root, Inc. has a diverse ownership structure. Institutional investors hold approximately 61.10% of the company's stock, while insiders own about 193.33% and retail investors hold a smaller stake. Major institutional shareholders include Ribbit Management Company, LLC, BlackRock, Inc., T. Rowe Price Investment Management, Inc., Vanguard Group Inc, and Capital Research Global Investors. Significant individual and insider owners include Capital Partners III LP, Silver Lake Group LLC, Venture Overage Fund LP, SVB Financial Group, Hemal Shah, Robert H. Bateman, and CEO Alexander Timm.