Traders Buy Large Volume of Lemonade Call Options (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the recipient of unusually large options trading on Thursday. Traders bought 31,222 call options on the company. This is an increase of 69% compared to the typical volume of 18,479 call options.

Lemonade Stock Performance

NYSE:LMND traded up $13.55 during mid-day trading on Thursday, reaching $98.91. The stock had a trading volume of 3,964,487 shares, compared to its average volume of 2,088,031. The stock has a market capitalization of $7.39 billion, a P/E ratio of -41.38 and a beta of 1.98. The firm has a 50 day moving average price of $76.84 and a two-hundred day moving average price of $60.84. Lemonade has a one year low of $24.31 and a one year high of $99.90.

Lemonade (NYSE:LMND) last posted its quarterly earnings results on Wednesday, November 5th. The company reported ($0.51) EPS for the quarter, topping the consensus estimate of ($0.72) by $0.21. The firm had revenue of $194.50 million for the quarter, compared to the consensus estimate of $185.06 million. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The business’s revenue was up 42.4% compared to the same quarter last year. During the same period last year, the firm posted ($0.95) earnings per share. Research analysts forecast that Lemonade will post -3.03 earnings per share for the current year.

Insider Activity

In other news, insider John Sheldon Peters sold 18,930 shares of the company’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $72.77, for a total transaction of $1,377,536.10. Following the sale, the insider directly owned 83,467 shares in the company, valued at $6,073,893.59. This represents a 18.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, COO Adina Eckstein sold 41,557 shares of the stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $78.95, for a total transaction of $3,280,925.15. Following the completion of the sale, the chief operating officer directly owned 204,229 shares in the company, valued at approximately $16,123,879.55. The trade was a 16.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 170,725 shares of company stock worth $13,064,465. 14.70% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Bayforest Capital Ltd bought a new position in Lemonade in the 3rd quarter worth $25,000. Strategic Advocates LLC purchased a new position in shares of Lemonade during the third quarter valued at about $33,000. NewEdge Advisors LLC bought a new position in Lemonade in the first quarter worth about $35,000. Estabrook Capital Management bought a new position in Lemonade in the second quarter worth about $44,000. Finally, Migdal Insurance & Financial Holdings Ltd. lifted its holdings in Lemonade by 30.7% in the second quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,034 shares of the company’s stock worth $45,000 after buying an additional 243 shares during the period. Hedge funds and other institutional investors own 80.30% of the company’s stock.

Analysts Set New Price Targets

LMND has been the topic of several recent analyst reports. Piper Sandler lowered their target price on shares of Lemonade from $60.00 to $55.00 and set a “neutral” rating on the stock in a research note on Friday, October 10th. Citizens Jmp raised their price target on Lemonade from $60.00 to $80.00 and gave the company a “market outperform” rating in a report on Monday, November 24th. Morgan Stanley set a $85.00 price objective on Lemonade and gave the stock an “equal weight” rating in a report on Tuesday, December 16th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a research note on Wednesday, October 8th. Finally, Keefe, Bruyette & Woods increased their price target on shares of Lemonade from $35.00 to $40.00 and gave the stock an “underperform” rating in a report on Tuesday, November 25th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Lemonade has an average rating of “Hold” and an average price target of $71.50.

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.