Root (NASDAQ:ROOT) stock is falling on Friday after the car insurance company responded to reports of a takeover bid.
Root’s board of directors released a joint statement concerning reports that Embedded Insurance has been attempting to buy the company. Those reports claim that it was willing to pay $19.34 per share for ROOT stock.
However, the company’s board doesn’t back up these claims in a recent statement. Here’s what it said about the acquisition talk:
“Root’s Board of Directors has always considered and evaluated, and will continue to consider and evaluate, any bona fide proposal or opportunity to enhance shareholder value in accordance with its fiduciary duties. At this time Root is not in receipt of any proposal that is either actionable or in the best interests of Root’s shareholders.”
How This Affects ROOT Stock
Investors were excited about the prospect that ROOT stock could be acquired by Embedded Insurance. That resulted in its shares rising higher when the claim was made last week. Now that the company’s board has rejected these reports, it only makes sense that ROOT would give up at least some of those gains.
Despite today’s news, shares of ROOT stock aren’t seeing heavy trading on Friday. Only about 50,000 shares have changed hands as of this writing. That’s still well below its daily average trading volume of about 372,000 shares.
ROOT stock is down 19.7% as of Friday morning.
Investors can find more of the latest stock market news ready to go below!
We have all of the most recent stock market stories traders need to know about on Friday! A few examples include why shares of Lion Group (NASDAQ:LGHL) and Renalytix (NASDAQ:RNLX) stock are up, as well as a breakdown of the biggest pre-market stock movers this morning. All of that news is ready to go at the following links!
More Friday Stock Market News
- Why Is Lion Group (LGHL) Stock Up 17% Today?
- Why Is Renalytix (RNLX) Stock Up 45% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
