Lemonade (NYSE:LMND) Shares Gap Down – Here’s Why

Lemonade, Inc. (NYSE:LMND) shares gapped down before the market opened on Wednesday . The stock had previously closed at $62.11, but opened at $49.21. Lemonade shares last traded at $47.7190, with a volume of 1,572,328 shares.

Analyst Ratings Changes

Several brokerages have issued reports on LMND. TD Cowen reissued a “hold” rating on shares of Lemonade in a report on Monday, June 8th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Lemonade in a report on Tuesday, May 26th. UBS Group set a $75.00 target price on shares of Lemonade in a research report on Thursday, May 21st. Truist Financial lowered their target price on shares of Lemonade from $98.00 to $70.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Finally, Citizens Jmp dropped their price target on shares of Lemonade from $85.00 to $80.00 and set a “market outperform” rating for the company in a research report on Thursday, April 30th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $66.78.

Lemonade Stock Performance

The company has a 50-day moving average of $61.61 and a 200 day moving average of $64.10. The firm has a market cap of $3.63 billion, a P/E ratio of -25.03 and a beta of 1.79.

Lemonade (NYSE:LMND) last announced its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.56). Lemonade had a negative return on equity of 26.52% and a negative net margin of 16.44%.The firm had revenue of $294.40 million for the quarter, compared to analysts’ expectations of $291.01 million. During the same period in the prior year, the business posted ($0.60) earnings per share. The business’s revenue was up 79.4% compared to the same quarter last year. Sell-side analysts anticipate that Lemonade, Inc. will post -1.7 EPS for the current fiscal year.

Insider Buying and Selling at Lemonade

In other news, insider John Sheldon Peters sold 3,444 shares of the business’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $79.00, for a total value of $272,076.00. Following the sale, the insider owned 77,942 shares in the company, valued at approximately $6,157,418. The trade was a 4.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Maya Prosor sold 1,220 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total transaction of $64,867.40. Following the completion of the sale, the insider directly owned 187,573 shares in the company, valued at approximately $9,973,256.41. The trade was a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 10,007 shares of company stock worth $620,201 in the last 90 days. 12.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lemonade

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LMND. TD Waterhouse Canada Inc. grew 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 last quarter. Watershed Private Wealth LLC increased its holdings 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 buying an additional 140 shares in the last quarter. AQR Capital Management LLC raised its stake 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 during the last quarter. Wealth Enhancement Advisory Services LLC raised its stake 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 during the last quarter. Finally, The Manufacturers Life Insurance Company boosted its holdings in shares of Lemonade by 0.8% in the 4th quarter. The Manufacturers Life Insurance Company now owns 32,431 shares of the company’s stock worth $2,308,000 after acquiring an additional 259 shares in the last quarter. 80.30% of the stock is currently owned by institutional investors and hedge funds.

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.