Root
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Stock prices fluctuated, and InsurTech short-sellers took some profits. -
Root also issued BlackRock warrants equal to 2% of all issued and outstanding shares on a diluted basis at an exercise price of $9.00 per share.
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The InsurTech’s stock traded at $28.25 by midday Tuesday, down from its $163.93 peak in February 2021.
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It is hard to see how the auto insurer can simultaneously address all of its challenges.
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The share price of the auto InsurTech plunged after the company said it was cutting its headcount by 330 staffers, or about 20% of its workforce.
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Recently terminated Root employees took to social media platforms to announce their dismissals, after the company eliminated about 20% of its workforce.
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The company termed the massive headcount reduction as an “organizational realignment”.
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The latest report shows even higher inflation pushing up severity, forcing carriers to take rate.
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InsurTechs, including Lemonade, Root, Hippo, and Metromile, shed some short interest but remain the target of choice for short-sellers.
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The departure comes after the InsurTech announced sweeping changes to its executive ranks in June.
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The Inside P&C research team looks forward to the big issues of the new year.
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Lemonade, Root, and Metromile remain the focus of short sellers, as most firms see little short interest change.
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