Root Pulls Back From Recent Peak: A Good Stock Opportunity?

The previous week was not a particularly good time in the stock markets and many stocks tanked considerably. One of those was that of the auto insurance firm Root.

This past Friday the Root (NASDAQ: ROOT) stock declined by as low as 18% and it now remains to be seen if the declines are going to deepen this week. The company announced its financial results for the 2020 fourth quarter last Thursday and clearly, it failed to impress investors.

Although Root managed to boost its direct written premiums tally by as high as 37% year on year, the company’s revenues fell sharply. The revenues for the quarter came in at $50.9 million, which reflects a steep decline of as low as 50% from the $106.5 million in revenues generated in the prior-year period. On the other hand, the net loss came in at $133 million, which was worse than the $85 million loss suffered by Root in the year-ago period.

Richard McEntire

Finance and Entertainment ReporterRichard is a bottle of wine - the older the sweeter. He has already found the sweetest hobby in writing entertainment and finance news for Own Snap. Readers get the updated posts regularly from him searching for real-time news.