Lemonade (NYSE:LMND) Reaches New 52-Week Low – Should You Sell?

Lemonade, Inc. (NYSE:LMND) shares hit a new 52-week low during trading on Friday. The stock traded as low as $42.60 and last traded at $42.62, with a volume of 643,554 shares trading hands. The stock had previously closed at $45.91.

Analysts Set New Price Targets

Several research analysts have recently weighed in on LMND shares. Keefe, Bruyette & Woods upgraded shares of Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 price target on the stock in a research note on Thursday, July 30th. Piper Sandler dropped their price objective on shares of Lemonade from $75.00 to $51.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Wall Street Zen upgraded shares of Lemonade from a “sell” rating to a “hold” rating in a report on Saturday, September 19th. Weiss Ratings reissued a “sell (d-)” rating on shares of Lemonade in a research report on Thursday, October 15th. Finally, Morgan Stanley cut their target price on Lemonade from $56.00 to $48.00 and set an “equal weight” rating on the stock in a research note on Tuesday, October 6th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $63.50.

Lemonade Trading Down 6.5%

The company has a market capitalization of $3.32 billion, a PE ratio of -23.40 and a beta of 1.87. The stock has a fifty day simple moving average of $48.01 and a 200-day simple moving average of $58.86.

Lemonade (NYSE:LMND) last posted its quarterly earnings data on Tuesday, July 28th. The company reported ($0.56) earnings per share for the quarter, meeting the consensus estimate of ($0.56). Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%. The business had revenue of $294.40 million during the quarter, compared to the consensus estimate of $291.01 million. During the same period in the prior year, the company earned ($0.60) earnings per share. The company’s revenue was up 79.4% compared to the same quarter last year. As a group, equities research analysts predict that Lemonade, Inc. will post -1.83 EPS for the current year.

Insider Buying and Selling

In other Lemonade news, insider John Peters sold 2,249 shares of the company’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $54.45, for a total value of $122,458.05. Following the sale, the insider owned 73,834 shares of the company’s stock, valued at approximately $4,020,261.30. This represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 1,040 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total value of $56,815.20. Following the sale, the insider owned 186,533 shares in the company, valued at $10,190,297.79. This trade represents a 0.55% decrease in their position. 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. Over the last quarter, insiders have sold 15,148 shares of company stock valued at $804,250. Insiders own 12.20% of the company’s stock.

Institutional Trading of Lemonade

Hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in shares of Lemonade during the second quarter worth approximately $393,408,000. Bank of America Corp DE increased its position in Lemonade by 52.1% in the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company’s stock valued at $22,591,000 after acquiring an additional 123,484 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Lemonade in the 2nd quarter worth $13,861,000. Canada Pension Plan Investment Board acquired a new stake in Lemonade during the 2nd quarter worth $13,550,000. Finally, Man Group plc acquired a new stake in shares of Lemonade during the second quarter worth $8,864,000. 80.30% of the stock is currently owned by institutional investors.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers insurance products through digital platforms, including its mobile application and website. The company uses artificial intelligence, automation and data analytics to support policy purchasing, customer service and claims processing.

Lemonade’s product offerings include renters, homeowners, car, pet and term life insurance. Coverage and product availability vary by jurisdiction, and some policies are provided through regulated insurance subsidiaries or underwritten in partnership with other insurers.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade serves customers in the United States and selected European markets, including Germany, the Netherlands, France and the United Kingdom.