Lemonade (NYSE:LMND) Shares Up 11.4% – Here’s Why

Lemonade, Inc. (NYSE:LMND)’s stock price was up 11.4% during trading on Wednesday . The stock traded as high as $60.14 and last traded at $59.6950. Approximately 519,374 shares changed hands during trading, a decline of 76% from the average daily volume of 2,156,268 shares. The stock had previously closed at $53.58.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on LMND shares. TD Cowen reiterated a “hold” rating on shares of Lemonade in a research note on Monday. Truist Financial cut their price target 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. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research note on Tuesday, April 21st. Morgan Stanley cut their price target on shares of Lemonade from $80.00 to $75.00 and set an “overweight” rating on the stock in a research note on Thursday, May 21st. Finally, Wolfe Research set a $44.00 price target on shares of Lemonade in a research report on Tuesday, February 24th. Five 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. According to MarketBeat, Lemonade currently has an average rating of “Hold” and an average target price of $64.89.

Lemonade Stock Up 5.4%

The business’s fifty day moving average price is $58.62 and its 200 day moving average price is $67.19. The firm has a market capitalization of $4.34 billion, a PE ratio of -30.29 and a beta of 1.83.

Lemonade (NYSE:LMND) last announced its earnings results on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, beating analysts’ consensus estimates of ($0.58) by $0.11. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The business had revenue of $258.00 million during the quarter, compared to analysts’ expectations of $251.51 million. During the same period in the prior year, the company earned ($0.86) earnings per share. The business’s revenue was up 70.6% compared to the same quarter last year. On average, analysts anticipate that Lemonade, Inc. will post -1.69 earnings per share for the current year.

Insider Transactions at Lemonade

In other news, insider John Sheldon Peters sold 3,608 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $52.94, for a total value of $191,007.52. Following the completion of the sale, the insider directly owned 81,386 shares of the company’s stock, valued at approximately $4,308,574.84. This represents a 4.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Maya Prosor sold 1,220 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were 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 of the company’s stock, valued at $9,973,256.41. The trade was a 0.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 6,563 shares of company stock valued at $348,125 over the last ninety days. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LMND. AQR Capital Management LLC increased its stake in shares of Lemonade by 107.3% during the first quarter. AQR Capital Management LLC now owns 30,490 shares of the company’s stock worth $958,000 after acquiring an additional 15,779 shares during the period. Millennium Management LLC increased its stake in shares of Lemonade by 255.2% during the first quarter. Millennium Management LLC now owns 329,934 shares of the company’s stock worth $10,370,000 after acquiring an additional 237,044 shares during the period. NewEdge Advisors LLC acquired a new position in shares of Lemonade during the first quarter worth about $35,000. Goldman Sachs Group Inc. increased its stake in shares of Lemonade by 7.3% during the first quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company’s stock worth $19,244,000 after acquiring an additional 41,759 shares during the period. Finally, Prudential Financial Inc. acquired a new position in shares of Lemonade during the second quarter worth about $307,000. 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.