Lemonade (NYSE:LMND) Sets New 1-Year Low After Analyst Downgrade

Shares of Lemonade, Inc. (NYSE:LMND) hit a new 52-week low during trading on Friday after Piper Sandler lowered their price target on the stock from $51.00 to $47.00. Piper Sandler currently has a neutral rating on the stock. Lemonade traded as low as $39.31 and last traded at $39.5570, with a volume of 259,831 shares traded. The stock had previously closed at $41.48.

Other equities research analysts have also issued reports about the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research note on Thursday, October 15th. Wall Street Zen upgraded shares of Lemonade from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Morgan Stanley decreased their price objective on Lemonade from $56.00 to $48.00 and set an “equal weight” rating for the company in a report on Tuesday, October 6th. Finally, Keefe, Bruyette & Woods raised Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 target price on the stock in a research report on Thursday, July 30th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $63.00.

Insider Buying and Selling at Lemonade

In other news, insider John Peters sold 2,249 shares of Lemonade stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $54.45, for a total value of $122,458.05. Following the completion of the transaction, the insider owned 73,834 shares of the company’s stock, valued at $4,020,261.30. This trade represents a 2.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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. Also, insider Maya Prosor sold 1,040 shares of Lemonade stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total transaction of $56,815.20. Following the completion of the transaction, the insider directly owned 186,533 shares of the company’s stock, valued at approximately $10,190,297.79. This trade represents a 0.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 15,148 shares of company stock worth $804,250 over the last ninety days. Insiders own 12.20% of the company’s stock.

Key Headlines Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q3 revenue rose 72.8% year over year to $336.1 million, topping the $322.7 million consensus estimate. The loss of $0.56 per share was also narrower than the $0.58 loss analysts expected. Read More.
• Positive Sentiment: Lemonade forecast Q4 revenue of $342 million to $346 million, above the $341.1 million FactSet estimate, pointing to continued growth. Read More.
• Positive Sentiment: The company completed nationwide availability of renters insurance by launching in Minnesota, expanding the reach of its first product offered in all 50 states and Washington, D.C. Read More.
• Negative Sentiment: Despite the earnings and revenue beats, LMND shares came under pressure after the report. The quarterly loss per share widened from $0.51 a year earlier, while coverage highlighted rising expense headwinds and continued negative profitability as investor concerns. Read More. · Read More.

Hedge Funds Weigh In On Lemonade

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Lemonade during the second quarter worth approximately $393,408,000. Bank of America Corp DE lifted its position in Lemonade by 52.1% during the first quarter. Bank of America Corp DE now owns 360,411 shares of the company’s stock worth $22,591,000 after purchasing an additional 123,484 shares during the period. Lido Advisors LLC bought a new position in Lemonade in the first quarter valued at approximately $1,318,000. Baird Financial Group Inc. acquired a new stake in shares of Lemonade in the 2nd quarter valued at $3,529,000. Finally, Deutsche Bank AG bought a new position in Lemonade in the second quarter valued at about $5,078,000. Institutional investors own 80.30% of the company’s stock.

Lemonade Stock Performance

The company has a market capitalization of $3.07 billion, a P/E ratio of -21.65 and a beta of 1.98. The firm’s fifty day moving average is $46.94 and its 200-day moving average is $57.89.

Lemonade (NYSE:LMND) last issued its earnings results on Thursday, November 5th. The company reported ($0.56) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.58) by $0.02. The firm had revenue of $336.10 million for the quarter, compared to analyst estimates of $322.74 million. Lemonade had a negative net margin of 14.19% and a negative return on equity of 26.78%. The company’s quarterly revenue was up 72.8% on a year-over-year basis. During the same quarter last year, the business posted ($0.51) earnings per share. As a group, analysts expect that Lemonade, Inc. will post -1.83 EPS for the current fiscal year.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers insurance products through digital platforms, including its mobile application and website. The company uses artificial intelligence, automation and data analytics to support policy purchasing, customer service and claims processing.

Lemonade’s product offerings include renters, homeowners, car, pet and term life insurance. Coverage and product availability vary by jurisdiction, and some policies are provided through regulated insurance subsidiaries or underwritten in partnership with other insurers.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade serves customers in the United States and selected European markets, including Germany, the Netherlands, France and the United Kingdom.