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

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

Analyst Upgrades and Downgrades

A number of analysts recently commented on LMND shares. Piper Sandler decreased their price target on Lemonade from $60.00 to $55.00 and set a “neutral” rating for the company in a research report on Friday, October 10th. Citizens Jmp boosted their price target on shares of Lemonade from $60.00 to $80.00 and gave the stock a “market outperform” rating in a report on Monday, November 24th. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a report on Thursday, January 22nd. JMP Securities set a $80.00 target price on shares of Lemonade in a research note on Monday, November 24th. Finally, Keefe, Bruyette & Woods increased their target price on shares of Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a research report on Tuesday, November 25th. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $71.50.

Lemonade Price Performance

The firm has a market capitalization of $6.11 billion, a PE ratio of -34.26 and a beta of 2.02. The company’s fifty day simple moving average is $79.90 and its 200 day simple moving average is $63.48.

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, beating the consensus estimate of ($0.72) by $0.21. The company had revenue of $194.50 million for 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 previous year, the firm posted ($0.95) earnings per share. On average, analysts anticipate that Lemonade, Inc. will post -3.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Daniel A. Schreiber sold 126,625 shares of Lemonade stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $94.74, for a total value of $11,996,452.50. Following the completion of the transaction, the chief executive officer directly owned 1,523,534 shares in the company, valued at approximately $144,339,611.16. The trade was a 7.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Debra Schwartz sold 4,200 shares of the stock in a transaction dated 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 trade represents a 16.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 306,350 shares of company stock valued at $25,870,918 over the last three months. Insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Strs Ohio increased its holdings in shares of Lemonade by 162.5% in the fourth quarter. Strs Ohio now owns 4,200 shares of the company’s stock worth $299,000 after purchasing an additional 2,600 shares during the period. Sparta 24 Ltd. bought a new position in Lemonade in the 4th quarter worth about $12,053,000. Oppenheimer & Co. Inc. increased its stake in Lemonade by 79.7% in the 4th quarter. Oppenheimer & Co. Inc. now owns 16,124 shares of the company’s stock worth $1,148,000 after acquiring an additional 7,150 shares during the last quarter. Wealthfront Advisers LLC raised its holdings in shares of Lemonade by 35.6% in the 4th quarter. Wealthfront Advisers LLC now owns 8,304 shares of the company’s stock valued at $591,000 after acquiring an additional 2,179 shares in the last quarter. Finally, Torren Management LLC purchased a new stake in Lemonade in the fourth quarter valued at approximately $35,000. 80.30% of the stock is owned by institutional investors.

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.