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ROROOT

Root, Inc.

$ROOT·$722M·Insurance - Property & Casualty·Financial Services
$55.49-1.7%YTD-19.0%1Y-37.5%
Mentions · last 7 days
2026-08-22: 11 posts68+19%
Price updated 15h ago·X counts updated 10d ago
ROROOT
$ROOTRoot, Inc.
$55.49-1.67%68 posts+19%
AI analysisFundamentalsVoices on X
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AI verdict & sentimentAI analysisGenerated by AI from underlying data

Top X posts

Today's AI verdict on what's driving $ROOT, plus how loud the X conversation is and which way it's leaning.

AI analysis

TickerTalks’ read on the fundamentals and what’s driving the move.

Comeback attemptAcceleratingAI verdict · as of 2026-08-25

The move is getting stronger, with heavier trading behind it.

AI-telematics auto insurer with four consecutive massive EPS surprises — 933%, 149%, 80%, 19% — as the model finally scales profitably.

Root is a direct-to-consumer auto and renters insurance company using mobile-phone telematics (how you actually drive) to price policies more accurately than traditional underwriters. After years of losing money as it scaled the model, the last four quarters have shown genuine inflection.

  • EPS surprises past four quarters: Q4 25 +19%, Q1 26 +933%, Q2 26 +149%, Q3 26 +80% — actual EPS of $2.09, $1.49, and now $1.49 with revenue holding around $390M/quarter
  • Revenue is growing 13-32% year-over-year each quarter with the gross margin improving from 21% (Q3 25) to 42.5% (Q1 26) — that's the direct evidence the AI/telematics data advantage is compounding
  • The stock is down 36% over trailing year and 19% year-to-date despite the operational inflection — the market is still pricing in prior years of losses rather than the recent execution
  • Free cash flow yield is 23.6%, extraordinary for an insurance business at this size ($722M market cap)
  • Beta of 2.93 makes this one of the most volatile mid-caps; combined with a low float of 12.6M shares, position sizing matters
  • Analyst 2026 EPS estimate is $3.18, dipping to $2.62 in 2027 as growth investment continues — the stock at $56.54 is 17.8x forward, reasonable if the growth math holds

A partnership with TheZebra.com announced August 12 adds embedded distribution — small but incremental.

What to watch: The Q3 print on November 4 needs to sustain a positive EPS surprise cadence — a single miss after four huge beats would break the accelerating-trajectory read fast.

On the calendar: 2026-11-04 — Q3 earnings

X sentiment

What the X crowd is saying right now — descriptive, summarised from the day’s posts.

Bullish sentiment15 posts analyzed · as of 2026-08-30

Root Inc's thread is bullish on Q2 results delivering revenue of $389M, net income +15% to $25M, adjusted EBITDA +16% to $44M, a combined ratio tightening to 92.1% and PIF +6%. Chart posters call the stock 'a coiled spring' inside a $92.23-$41.37 accumulation zone targeting at least $360+. A parallel cluster of Solana memecoin ROOT / USDG Bonds promoters (Ravenhood Treasury, Apiary pre-bonds, Genesis phases) adds crypto shill volume without weighing on the equity thesis.

Read the AI verdict + X sentiment for $ROOT

  • One-line verdict on what's driving the move — fundamentals, momentum, both, or an event
  • Next dated catalyst when there is one (earnings, deal closing, activist clock)
  • X crowd read with bullish/bearish call + post volume
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What it does

Plain-English summary of the business — what they sell and how they make money.

Telematics-based auto insurer pricing risk from mobile driving behavior, sold direct-to-consumer via app.

Industry overviewAI analysisGenerated by AI from underlying data

Where Insurance - Property & Casualty sits in its cycle right now — and what that implies for $ROOT.

Insurance - Property & Casualty · Financial Services

Catastrophe losses remain the primary risk factor; climate-driven severity trends are pushing reinsurance pricing higher, which eventually filters into primary premiums. Rate hardening is allowing combined ratios to recover from loss-elevated troughs.

What this means for $ROOT

Partial — insurance earnings follow combined ratio and investment income dynamics, partially correlated to industry macro; Root, Inc.

Top industry ETF

$KIESPDR S&P Insurance ETF
+7.7%YTD
+7.9%1Y

Fundamentals & catalyst

Profitability, valuation, and the next earnings event — at a glance, with rule-of-thumb signals.

Key ratios

P/E
14.5How much investors are paying per dollar of profit the company actually earned in the last 12 months. Lower means the stock looks cheaper relative to earnings.~15–25 is typical for the S&P 500; high-growth names trade 30+; hyper-growth or speculative can be 100+ or negative.
ROIC
3.7%What percentage return the business earns on every dollar of capital (equity + debt) deployed in operations. The cleanest measure of business quality.Above ~15% is high-quality; consistently above 25% suggests a real moat. Below the company's cost of capital is value-destroying.
Op margin
3.7%Operating profit (after sales, marketing, R&D, and overhead but before interest and taxes) as a percentage of revenue. The clearest view of how well the underlying business is run.Mature business above 20% is healthy; software businesses can run 30%+; commodity / retail businesses operate in single digits.
FCF yield
23.6%Free cash flow (operating cash flow minus capex) divided by the company's market cap. The cash-on-cash return you'd get owning the whole business at today's price.Above ~5% is attractive; below ~2% means you're paying up for growth. Capital-light businesses (software) run higher than capital-heavy ones (utilities).
P/S
0.5Same idea as P/E but per dollar of revenue. Useful for companies that aren't profitable yet, where P/E is meaningless.Under ~2 is cheap; software / SaaS often runs 8–15; well above 20 implies the market is pricing in very high future growth.
ROE
14.7%Net income as a percentage of shareholders' equity. Similar to ROIC but counts only the equity side.Above 20% is strong, but can be inflated by leverage — a heavily indebted company can show high ROE with weak underlying ROIC.
Gross margin
28.6%Revenue minus the direct cost of producing what was sold, as a percentage of revenue. The first read on whether the product is structurally profitable.Software / SaaS is typically 70%+; consumer goods 30–50%; commodity / hardware businesses can be under 20%.
D/E
0.5Total debt divided by shareholders' equity. Measures how much the business runs on borrowed money versus owner capital.Under 1 is conservative; 1–2 is typical for mature businesses; over 2 is leveraged and more sensitive to interest rates.

Past earnings

QuarterReportedActualEstimateSurprise
Q2 2026Aug 5, 2026$1.49$0.83+80.0%
Q1 2026May 6, 2026$2.09$0.84+148.8%
Q4 2025Feb 25, 2026$0.31$0.03+933.3%
Q3 2025Nov 5, 2025$-0.35$-0.43+18.6%
Next earningsWed, Nov 4·consensus EPS $0.45

Quarterly trend

QuarterRevenueYoYGrossOpEPSFCF
Q1 FY26$393.5M+12.6%42.5%9.2%$2.19$5.8M
Q4 FY25$397.0M+21.5%24.3%1.4%$0.33$65.9M
Q3 FY25$387.8M+26.9%21.0%-1.3%$-0.35$53.7M
Q2 FY25$382.9M+32.4%26.6%5.7%$1.36$52.0M

Forward consensus

3-year forecast · up to 5 analysts
FYRevenueRangeEPSRangeAnalysts
FY26$1.6B$1.6B – $1.6B$3.18$3.13 – $3.263
FY27$1.7B$1.7B – $1.8B$2.62$2.57 – $2.685
FY28$1.9B$1.9B – $1.9B$2.76$1.50 – $4.013

Setup & momentum

Volume, range, and moving-average position — the technical setup driving short-term moves.

Right now

Vol vs 30dToday's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.0.7×Today's traded share volume divided by the average over the prior 30 trading days. ≥3× signals unusual interest; below 1× is quiet.
52w rangeWhere the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.23%Where the latest close sits between the 52-week low (0%) and high (100%). Above 80% is extended; below 30% is basing or in a downtrend.
vs 50d MALatest close vs the 50-day simple moving average. Positive = short-term trend is up.-2.6%Latest close vs the 50-day simple moving average. Positive = short-term trend is up.
vs 200d MALatest close vs the 200-day simple moving average. Positive = long-term trend is up.-7.4%Latest close vs the 200-day simple moving average. Positive = long-term trend is up.

Float & profile

FloatLow float · 12.6M shFree-float shares — the slice of issued stock actually available to trade. Lower buckets squeeze harder on a catalyst.Traded today1.5% of floatToday's volume as a percent of the free float. Above 5% on a single day is unusually high turnover for the available share count.β2.935-year weekly beta vs the S&P 500. Above 1.5 means the stock typically moves more than the index; below 0.8 moves less.

Insider activity

Recent open-market buys and sells by officers and directors — flagged when multiple insiders cluster.

Recent transactions

SellMay 15Jonathan AllisonChief Administrative Officer1.6K sh$90KSellMay 12Jonathan AllisonChief Administrative Officer1.7K sh$95KSellApr 7Jonathan AllisonChief Administrative Officer1.7K sh$76KSellApr 2Jonathan AllisonChief Administrative Officer4.1K sh$174KSellMar 20Jonathan AllisonChief Administrative Officer4.0K sh$179KSellMar 17Jonathan AllisonChief Administrative Officer4.0K sh$180KSellMar 12Jonathan AllisonChief Administrative Officer3.9K sh$170KSellMar 5Jonathan AllisonChief Administrative Officer3.9K sh$187K
+ 24 other (11 inkinds · 8 awards · 4 exempts · 1 gift) in window

See when $ROOT insiders are putting their own money in

  • Real-time open-market buys and sells from Form 4 filings
  • Cluster-buy detection when multiple insiders pile in at once
  • 30 / 60 / 180-day windows so you can spot building conviction
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SEC filings

Material 8-K, 13D, S-3, and 424B5 events from the last 180 days — the filings that actually move the price.

Recent material filings

8-KPress release / Reg FDAug 58-K — Item 2.02: Earnings release · Item 7.01: Press release / Reg FD
AI summary

ROOT filed an 8-K (Item 2.02) reporting its financial results, filed 2026-08-05. The actual financial figures are in the attached press release (Exhibit 99.1), not reproduced in the body excerpt. This is a material disclosure; investors should review the press release for beat/miss details and guidance.

8-KCharter amendmentJun 88-K — Item 5.03: Charter amendment · Item 5.07: Shareholder vote
AI summary

Root, Inc. held its 2026 Annual Meeting on June 3, 2026, at which stockholders approved a Delaware-law charter amendment to extend officer exculpation from monetary liability (paralleling existing director protections), effective June 4, 2026. Stockholders also elected three Class III directors — Lawrence Hilsheimer, Alexander Timm, and Douglas Ulman — for terms expiring at the 2029 annual meeting. The officer exculpation amendment is a governance change that limits personal liability risk for officers; director elections are routine.

8-KAgreement terminatedMay 68-K — Item 1.01: Material agreement · Item 1.02: Agreement terminated · Item 2.02: Earnings release · Item 2.03: Material debt obligation · Item 7.01: Press release / Reg FD
AI summary

Root, Inc. entered a $200 million senior secured term loan with The Huntington National Bank on May 4, 2026 via subsidiary Caret Holdings; full amount funded immediately; SOFR-based interest at +3.00–3.75%; matures May 4, 2029. Material new debt facility; Root deploying capital to fund insurance business growth.

+ 10 other (3 13Gs · 2 10-Qs · 2 proxys · 1 S-8) in window

Recent news

Latest headlines from major outlets, sourced and timestamped — context for whatever just moved.

Bank of America Corp DE Cuts Stake in Root, Inc. $ROOTdefenseworld.net·4d agoRoot Inc (ROOT) Stock Down 5.4% -- Now Undervalued? GF Score: 68/100gurufocus.com·5d agoRoot Reduces Auto Insurance Rates by 15% in Florida, Citing Impact of Legal Reformsglobenewswire.com·5d agoRoot, Inc. (NASDAQ:ROOT) Given Average Rating of “Hold” by Brokeragesdefenseworld.net·5d agoIs Root Inc (ROOT) a Bargain After 6.4% Drop? GF Value Says Undervaluedgurufocus.com·20d ago

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