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

Lemonade, Inc. (NYSE:LMND) was the recipient of some unusual options trading activity on Tuesday. Stock traders acquired 22,566 call options on the stock. This represents an increase of approximately 27% compared to the average volume of 17,833 call options.

Lemonade Trading Up 15.9%

Shares of LMND stock traded up $9.16 on Tuesday, hitting $66.90. The stock had a trading volume of 5,823,866 shares, compared to its average volume of 2,743,303. Lemonade has a twelve month low of $24.31 and a twelve month high of $99.90. The company has a fifty day moving average price of $70.03 and a two-hundred day moving average price of $66.33. The firm has a market cap of $5.11 billion, a P/E ratio of -29.60 and a beta of 2.12.

Lemonade (NYSE:LMND) last released its quarterly earnings results on Wednesday, February 18th. The company reported ($0.29) EPS for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.12. Lemonade had a negative return on equity of 31.19% and a negative net margin of 22.43%.The business’s revenue was up 53.3% on a year-over-year basis. During the same quarter last year, the company earned ($0.42) EPS. On average, analysts expect that Lemonade will post -3.03 earnings per share for the current year.

Insider Buying and Selling

In other news, insider John Sheldon Peters sold 3,571 shares of the business’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $52.50, for a total transaction of $187,477.50. Following the transaction, the insider directly owned 76,729 shares in the company, valued at $4,028,272.50. The trade was a 4.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Daniel A. Schreiber sold 9,108 shares of Lemonade stock in a transaction dated Friday, January 23rd. The shares were sold at an average price of $99.04, for a total value of $902,056.32. Following the sale, the chief executive officer owned 1,514,426 shares of the company’s stock, valued at approximately $149,988,751.04. This represents a 0.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 160,300 shares of company stock valued at $14,796,026. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Lemonade

Hedge funds have recently bought and sold shares of the business. Bayforest Capital Ltd acquired a new position in Lemonade during the third quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Lemonade by 8,080.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock worth $29,000 after purchasing an additional 404 shares in the last quarter. Strategic Advocates LLC purchased a new position in shares of Lemonade during the third quarter valued at approximately $33,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Lemonade during the fourth quarter valued at about $33,000. Finally, Torren Management LLC bought a new position in shares of Lemonade in the fourth quarter valued at approximately $35,000. 80.30% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have commented on LMND shares. Citigroup restated an “outperform” rating on shares of Lemonade in a research note on Friday, January 16th. Truist Financial began coverage on Lemonade in a research report on Tuesday, January 6th. They issued a “buy” rating and a $98.00 price target on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a report on Thursday, January 22nd. Citizens Jmp set a $80.00 price objective on shares of Lemonade in a research report on Monday, November 24th. Finally, Cantor Fitzgerald upped their target price on shares of Lemonade from $85.00 to $92.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 14th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Lemonade currently has a consensus rating of “Hold” and an average target price of $68.75.

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.