Root (NASDAQ:ROOT) stock is rocketing higher on Thursday as reports spread that the car insurance company has received a takeover bid.
According to The Wall Street Journal, Embedded Insurance has been sending offers to Root for an acquisition. The latest insider news claims that the company is willing to pay $19.34 per share for ROOT stock.
Investors in ROOT stock are no doubt taking notice of that alleged offering, as it represents a massive 221% premium over the stock’s closing price of $6.02 on Tuesday. That was the last day of trading before the takeover bid was reported.
Insiders at Root claim that James Hall, founder of Embedded Insurance, has been seeking the acquisition of the company since July 2022. The most recent offer mentioned above was sent to Root’s board on June 9.
Will a ROOT Stock Acquisition Happen?
It’s possible that Root has been building toward a potential deal with Embedded Insurance. Co-founder and CEO Alex Timm previously spoke about how the company has been cutting costs to close in on profitability.
Timm told The Columbus Dispatch:
“We’ve been through a lot for sure, but I think we’re starting to see the light at the end of the tunnel […] I think the turnaround is really starting to hold.”
ROOT stock is up 45.7% as of Thursday morning. This comes after shares jumped 59.8% yesterday when the news was first announced. Shares are also seeing heavy trading today with some 1.6 million units on the move. For the record, its daily average trading volume is closer to 140,000 shares.
Investors seeking out more of the most recent stock market news will want to keep reading!
We have all of the latest stock market coverage that traders need to know about on Thursday! Among that is what has shares of ShiftPixy (NASDAQ:PIXY) stock climbing, the biggest pre-market stock movers this morning and more. All of this news is ready to go at the links below!
More Stock Market News For Thursday
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Insider Lauren Stat Just Sold 11,000 Shares of Palantir (PLTR) Stock
On the date of publication, William White did not hold (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.
