Form 4: Root CTO Sells Shares Under 10b5-1 Plan

Root Inc.'s President and CTO, Mahtiyar Bonakdarpour, sold 5,750 shares of Class A Common Stock for $89.74 per share under a pre-arranged 10b5-1 trading plan.

Summary

• Mahtiyar Bonakdarpour, President and CTO of Root, Inc., reported a sale of Class A Common Stock.
• The transaction involved the disposition of 5,750 shares at a price of $89.74 per share.
• The sale was executed on September 2, 2025, pursuant to a Rule 10b5-1 trading plan.
• Following the transaction, Bonakdarpour directly owns 274,226 shares of Class A Common Stock.
• Additionally, 149,294 shares are indirectly beneficially owned through various Drive Capital Overdrive funds (DCOF I, DCOF I TE, DCOIF I).
• The reporting person's spouse has an indirect pecuniary interest in these indirectly held shares through her carried interest in Drive Capital Overdrive Fund I (GP), LLC, the general partner of the funds, though the exact pecuniary interest is not readily determinable.

Sentiment

Score: 5

Explanation: The sale was executed under a pre-arranged 10b5-1 trading plan, which typically indicates a planned liquidity event rather than a reaction to new information, thus having a neutral immediate sentiment.

Positives

• The sale was conducted under a pre-arranged 10b5-1 trading plan, indicating a planned liquidity event rather than a reaction to recent, non-public information.
• The sale price of $89.74 per share represents a specific valuation for the transaction.

Negatives

• An insider sale, even under a 10b5-1 plan, reduces the direct ownership stake of a key executive in the company.

Industry Context

Insider sales under Rule 10b5-1 plans are a common practice for executives to manage personal finances and diversify holdings without violating insider trading regulations. Such pre-scheduled sales are generally viewed as neutral events by the market, as they are not typically driven by new, material non-public information.

Stakeholder Impact

• Shareholders: Minimal direct impact as the sale was pre-planned and disclosed, not signaling a change in company fundamentals.

Key Dates

Recommendation

The sale by a key executive was conducted under a pre-arranged 10b5-1 trading plan, which is a common practice for managing personal liquidity and does not typically signal a change in the company's fundamental outlook. Therefore, it does not warrant an immediate change in investment recommendation based solely on this filing.

Keywords

Root Inc., ROOT, Mahtiyar Bonakdarpour, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Class A Common Stock, President, CTO