Root, Inc. was dropped from several Russell indices, including the Russell Microcap Growth Index, Russell 3000E Growth Index, Russell 3000E Index, and Russell Microcap Index. These changes are part of the annual rebalancing process for the Russell family of indices, which occurs at the end of June each year.
Inclusion or exclusion from major indices like the Russell series can impact a company's stock by influencing passive investment flows. Funds that track these indices would be required to adjust their portfolios, potentially leading to selling pressure on Root's shares as they are removed from these benchmarks.
The removal from these indices indicates a change in the company's market capitalization or growth characteristics as assessed by the index provider. This event could affect the liquidity and institutional ownership profile of Root's stock, as index funds reallocate their investments based on the updated index compositions.
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