Lemonade (NYSE:LMND) Trading Down 6.2% – Here’s What Happened

Lemonade, Inc. (NYSE:LMND) dropped 6.2% during mid-day trading on Monday . The company traded as low as $80.50 and last traded at $81.35. Approximately 934,239 shares changed hands during trading, a decline of 58% from the average daily volume of 2,249,167 shares. The stock had previously closed at $86.73.

Analyst Ratings Changes

A number of brokerages have weighed in on LMND. Citizens Jmp upped their price target on shares of Lemonade from $60.00 to $80.00 and gave the company a “market outperform” rating in a report on Monday, November 24th. Keefe, Bruyette & Woods upped their price target on Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a research report on Tuesday, November 25th. Citigroup restated an “outperform” rating on shares of Lemonade in a report on Friday, January 16th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research note on Thursday, January 22nd. Finally, JMP Securities set a $80.00 price target on Lemonade in a report on Monday, November 24th. Four investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $71.50.

Lemonade Stock Performance

The firm has a market capitalization of $5.53 billion, a price-to-earnings ratio of -30.97 and a beta of 2.03. The firm’s 50-day moving average price is $80.16 and its two-hundred day moving average price is $64.11.

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

Insider Buying and Selling

In other Lemonade news, Director Debra Schwartz sold 4,200 shares of the company’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $83.59, for a total value of $351,078.00. Following the sale, the director directly owned 21,567 shares in the company, valued at $1,802,785.53. This represents a 16.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO Adina Eckstein sold 7,919 shares of Lemonade stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $81.15, for a total value of $642,626.85. Following the transaction, the chief operating officer directly owned 188,391 shares of the company’s stock, valued at approximately $15,287,929.65. The trade was a 4.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 306,350 shares of company stock worth $25,870,918 in the last quarter. Corporate insiders own 14.70% of the company’s stock.

Institutional Trading of Lemonade

Several hedge funds have recently modified their holdings of the company. Bayforest Capital Ltd bought a new position in shares of Lemonade in the third quarter valued at approximately $25,000. Strategic Advocates LLC bought a new position in Lemonade in the 3rd quarter valued at $33,000. Torren Management LLC acquired a new position in Lemonade in the fourth quarter worth $35,000. NewEdge Advisors LLC bought a new stake in shares of Lemonade during the first quarter worth $35,000. Finally, Estabrook Capital Management acquired a new stake in shares of Lemonade in the second quarter valued at $44,000. Institutional investors and hedge funds own 80.30% of the company’s stock.

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.