Root Inc/OH (ROOT)
NASDAQFinancialsInsurance - Property & CasualtySnapshot 2026-09-04
$56.59+2.17%
Close 2026-09-04 · 1-day change
NASDAQFinancialsInsurance - Property & CasualtySnapshot 2026-09-04
QuarterlyIQ Insights · ROOT
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance is holding in the top half of its industry — the reason to own it looks intact.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 4.3% |
| Our one-year growth estimate | diamond | -0.7% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 4.9 percentage points more one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 33 industry peers · Company calendar date is not available
ROOT — restructuring
Dated 2026-09-01
Entry into a Material Definitive Agreement. Warrant Cancellation and Exchange Agreement and the New Warrant On August 31, 2026, the Company entered into the Warrant Cancellation and Exchange Agreement, whereby the Company and Carvana agreed on the following: (i) Carvana surrendered, and the Company thereby cancelled, all outstanding long-term warrants that were previously issued on October 1, 2021 (the “Warrant Cancellation”) and (ii) simultaneously with the Warrant Cancellation, the Company…
Why it matters: Launching in New Jersey and other states could drive significant growth and market share.
Supportive ifOfficial announcement of Root's launch in New Jersey or another state by year-end.
Worry ifNo new state launches announced by the end of 2026.
Why it matters: A drop might mean problems keeping customers or facing strong competition that affects growth.
Worry ifPolicies in force drop below 484,000.
Less concerning ifPolicies in force increase or stay stable at 484,000 or more.
Why it matters: This growth number shows Root can attract and keep customers. It shows how well they market and price.
Supportive ifPolicies in force increase by more than 6% year-over-year in the next earnings report.
Worry ifPolicies in force grow less than 4% year-over-year.
Why it matters: This program could signal management's confidence in Root's value and future growth. It may also support share price.
Supportive ifManagement says they are making progress on the share buyback program. This means they bought back shares.
Worry ifNo updates or delays in the share repurchase program.
We watch for confirming and disproving signals on each item. Resolutions are found automatically where possible and checked by hand for unclear cases. Last 90 days shown.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$277 on $10,000 · ±2.8% | How much price usually moves either way. |
| Bad day | $692 loss on $10,000 · 6.9% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $5,800 loss on $10,000 · 58.0% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: A drop in revenue growth in the financial sector can signal broader economic issues. This may affect Root's performance.
Worry ifSector revenue growth is below average. This shows there may be challenges ahead.
Less concerning ifSector revenue growth remains above its median, showing continued strength.
Why it matters: A decline could show problems for Root's growth and competition. It is a sign of market acceptance.
Worry ifPolicies in force show growth of less than 5% year-over-year.
Less concerning ifPolicies in force continue to grow by more than 6% year-over-year.
Why it matters: Gaining market share profitably is crucial for Root's growth strategy. It affects long-term success.
Supportive ifManagement reports a clear rise in market share and better margins.
Worry ifManagement says market share is not growing or is falling, even with efforts.
Why it matters: More share buybacks show management believes in the company's value. They want to return money to shareholders.
Supportive ifShare buybacks go over $30 million by the end of 2026.
Worry ifShare repurchases fall below $20 million by year-end 2026.
Why it matters: Entering New Jersey is a key step in Root's national expansion. Success here could drive overall growth.
Supportive ifPolicies in force grow by more than 10% in New Jersey within the first six months.
Worry ifPolicies in force in New Jersey grow less than 5% in the same period.
Why it matters: A drop below the median would signal a slowdown in the financial sector's growth phase.
Worry ifRevenue growth is below 12% compared to last year. This shows a big slowdown.
Less concerning ifRevenue growth remains above 12% year over year, showing continued strength.
Why it matters: This credit agreement can help with money for growth or daily needs. How they use it shows their plans.
Watch forManagement talks about using the $200 million for growth projects.
Also watch forManagement says the credit is not being used or is causing money problems.
Why it matters: A big drop might show trouble keeping market share. It could also mean pricing issues.
Worry ifQ3 gross written premium down more than 2% year over year.
Less concerning ifGross written premium stabilizes or grows year over year.
Why it matters: The new pricing model could improve customer acquisition and retention. It is key for long-term growth.
Supportive ifManagement confirms the new pricing model is now active. It shows better customer lifetime value.
Worry ifThe launch of the new pricing model is delayed or shows no improvement in customer metrics.
Why it matters: Partnerships help the company grow. Growth shows Root's strong position in the market.
Supportive ifPartnership new writings grow by nearly 30% year-over-year in the next quarter.
Worry ifPartnership new writings drop or grow much slower than 30% each year.
Why it matters: This model is key to improving pricing accuracy and customer lifetime value. Success here can enhance Root's competitive edge.
Supportive ifA good launch announcement or positive early results from the new pricing model.
Worry ifA delay in the launch or bad feedback from early results.