One Root Insider Raised Their Stake In The Previous Year

Insiders were net buyers of Root, Inc.'s (NASDAQ:ROOT ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Root

Root Insider Transactions Over The Last Year

The President & CTO Mahtiyar Bonakdarpour made the biggest insider purchase in the last 12 months. That single transaction was for US$176k worth of shares at a price of US$10.33 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$74.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Mahtiyar Bonakdarpour purchased 34.91k shares over the year. The average price per share was US$9.70. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Root is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Root Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Root shares. In total, Independent Director Beth Birnbaum dumped US$76k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Root insiders own about US$235m worth of shares (which is 21% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Root Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Root you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com