An investigation on behalf of investors of Root, Inc. (NASDAQ: ROOT) shares over potential securities laws violations by Root, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Root, Inc. (NASDAQ: ROOT) concerning whether a series of statements by Root, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Columbus, OH based Root, Inc. provides insurance products and services in the United States.
On or around October 27, 2020, Root, Inc. (NASDAQ: ROOT) conducted its initial public offering ('IPO'), selling 26.8 million shares of common stock priced at $27.00 per share.
Root, Inc. reported that its annual Total Revenue rose from $290.2 million in 2019 to $346.8 million in 2020, and that its Net Loss increased from $260.1 million in 2019 to $363 million in 2020.
On March 9, 2021, BofA Securities analyst Joshua Shanker initiated coverage of Root, Inc. (NASDAQ: ROOT) with an 'Underperform' rating on the premise that the Company is unlikely to be cash flow positive until 2027, finding that Root, Inc. 'will require not insignificant cash infusions from the capital markets to bridge its cash flow needs.'
Shares of Root, Inc. (NASDAQ: ROOT) declined to as low as $10.88 per share on March 15, 2021.