Lemonade (NYSE:LMND) Stock Price Up 7.4% – Should You Buy?

Shares of Lemonade, Inc. (NYSE:LMND) rose 7.4% on Wednesday . The stock traded as high as $68.61 and last traded at $69.85. 159,422 shares were traded during trading, a decline of 92% from the average session volume of 2,078,345 shares. The stock had previously closed at $65.05.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on LMND shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research note on Tuesday, April 21st. Piper Sandler reduced their target price on Lemonade from $65.00 to $62.00 and set a “neutral” rating for the company in a report on Thursday, April 30th. Truist Financial decreased their target price on Lemonade from $98.00 to $70.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. TD Cowen restated a “hold” rating on shares of Lemonade in a research note on Monday, June 8th. Finally, Citizens Jmp cut their price target on Lemonade from $85.00 to $80.00 and set a “market outperform” rating on the stock in a research report on Thursday, April 30th. Five research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $64.89.

Lemonade Stock Performance

The company has a market capitalization of $5.50 billion, a PE ratio of -38.25 and a beta of 1.79. The company’s 50-day simple moving average is $57.95 and its 200-day simple moving average is $65.32.

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. Analysts expect that Lemonade, Inc. will post -1.71 EPS for the current year.

Insider Activity

In other Lemonade news, insider John Sheldon Peters sold 3,608 shares of the company’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $52.94, for a total transaction of $191,007.52. Following the completion of the sale, the insider directly owned 81,386 shares of the company’s stock, valued at $4,308,574.84. This represents a 4.25% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 1,220 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the sale, the insider owned 187,573 shares of the company’s stock, valued at $9,973,256.41. This trade represents a 0.65% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 6,563 shares of company stock worth $348,125 in the last 90 days. 14.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lemonade

A number of large investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its position in Lemonade by 107.3% during the 1st quarter. AQR Capital Management LLC now owns 30,490 shares of the company’s stock worth $958,000 after purchasing an additional 15,779 shares during the period. Millennium Management LLC boosted its stake in shares of Lemonade by 255.2% in the first quarter. Millennium Management LLC now owns 329,934 shares of the company’s stock valued at $10,370,000 after buying an additional 237,044 shares in the last quarter. NewEdge Advisors LLC acquired a new position in Lemonade during the first quarter worth $35,000. Goldman Sachs Group Inc. raised its position in Lemonade by 7.3% in 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 in the last quarter. Finally, Prudential Financial Inc. purchased a new position in Lemonade in the second quarter worth $307,000. Hedge funds and other institutional investors own 80.30% of the company’s stock.

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.