Why Carvana-Backed Root Stock Is Soaring Thursday

Root Inc (NASDAQ: ROOT) shares are trading higher Thursday following reports suggesting the company has received a takeover bid.

What Happened: According to a Wall Street Journal report citing people familiar with the matter, Embedded Insurance has approached Root multiple times offering to acquire the company for $19.34 per share. 

The takeover offer represents a significant premium to recent share prices. The stock closed just over $6 per share on Tuesday and has traded as low as $3.31 this year. 

Entrepreneur James Hall, who runs Embedded Insurance, reportedly sent a proposal to Root on June 9 and has tried to engage in talks for nearly a year. 

Root is a car insurance firm backed by Carvana Co (NYSE: CVNA). Root shares have trended lower since the company went public in late 2020. 

See Also: Tesla's S, 3, X, Y Models Take Top 4 Spots In List Of 'Most American-Made' Cars: Here's Where Ford, GM Rank

ROOT Price Action: At time of publication, Root shares were up 54.8% at $14.88 after rising nearly 60% on Wednesday, per Benzinga Pro.

Photo: Paul Brennan from Pixabay.