Lemonade Target of Unusually High Options Trading (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw some unusual options trading activity on Monday. Traders bought 14,948 call options on the company. This represents an increase of 32% compared to the typical volume of 11,338 call options.

Lemonade Price Performance

Shares of NYSE:LMND traded up $0.35 during trading on Monday, hitting $51.81. The company’s stock had a trading volume of 960,805 shares, compared to its average volume of 2,167,461. The company has a 50-day moving average of $59.03 and a 200-day moving average of $67.43. The firm has a market cap of $3.98 billion, a price-to-earnings ratio of -27.73 and a beta of 1.83. Lemonade has a 12 month low of $35.70 and a 12 month high of $99.90.

Lemonade (NYSE:LMND) last released its earnings results on Tuesday, April 28th. The company reported ($0.47) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.58) by $0.11. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The company had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.51 million. During the same period in the prior year, the firm posted ($0.86) EPS. The firm’s quarterly revenue was up 70.6% compared to the same quarter last year. As a group, research analysts anticipate that Lemonade will post -1.69 earnings per share for the current year.

Insiders Place Their Bets

In other Lemonade news, insider Maya Prosor sold 1,220 shares of the business’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total transaction of $64,867.40. Following the transaction, the insider directly owned 187,573 shares of the company’s stock, valued at approximately $9,973,256.41. The trade was a 0.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 3,608 shares of the business’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $52.94, for a total transaction of $191,007.52. Following the transaction, the insider directly owned 81,386 shares in the company, valued at approximately $4,308,574.84. The trade was a 4.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 6,563 shares of company stock valued at $348,125 over the last quarter. 14.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. TD Waterhouse Canada Inc. boosted its stake in Lemonade by 3.4% during the fourth quarter. TD Waterhouse Canada Inc. now owns 3,671 shares of the company’s stock worth $261,000 after buying an additional 121 shares during the period. Watershed Private Wealth LLC lifted its position in shares of Lemonade by 1.7% during the fourth quarter. Watershed Private Wealth LLC now owns 8,310 shares of the company’s stock worth $592,000 after purchasing an additional 140 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Lemonade by 0.7% in the fourth quarter. AQR Capital Management LLC now owns 21,569 shares of the company’s stock valued at $1,535,000 after acquiring an additional 159 shares in the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in shares of Lemonade by 2.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 8,431 shares of the company’s stock valued at $600,000 after acquiring an additional 219 shares in the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Lemonade by 7.2% in the fourth quarter. GAMMA Investing LLC now owns 3,529 shares of the company’s stock valued at $251,000 after acquiring an additional 236 shares in the last quarter. 80.30% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Morgan Stanley reduced their target price on shares of Lemonade from $80.00 to $75.00 and set an “overweight” rating on the stock in a research report on Thursday, May 21st. Truist Financial reduced their target price on shares of Lemonade from $98.00 to $70.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Piper Sandler dropped their price target on shares of Lemonade from $65.00 to $62.00 and set a “neutral” rating on the stock in a research note on Thursday, April 30th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research note on Tuesday, April 21st. Finally, Wolfe Research set a $44.00 price target on shares of Lemonade in a research note on Tuesday, February 24th. Five investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Lemonade has an average rating of “Hold” and an average target price of $64.89.

About Lemonade

Lemonade, Inc (NYSE: LMND) is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company’s product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.