Shares of Root, Inc. (ROOT) are experiencing a significant pre-market plunge of 12.37% on Thursday, continuing the downward trend from the previous trading session. This sharp decline comes in the wake of a price target cut by Jefferies, a prominent investment bank and financial services company.

On Wednesday, Jefferies reduced its target price for Root Inc to $127 from the previous $138. This downward revision triggered a sell-off, causing Root's stock to plummet 15.23% during regular trading hours. The continued pre-market decline suggests that investors are still reacting to this news and adjusting their positions accordingly.

While the specific reasons behind Jefferies' decision to lower the price target were not explicitly stated, such revisions are typically based on reassessments of a company's financial outlook, industry conditions, or broader market factors. As the market continues to digest this information, investors and analysts will be closely monitoring Root, Inc. for any further developments or company updates that might provide additional context to this significant price movement.