Lemonade (NYSE:LMND) Trading Down 8.5% – Should You Sell?

Lemonade, Inc. (NYSE:LMND)’s share price dropped 8.5% during trading on Wednesday . The company traded as low as $52.90 and last traded at $53.10. Approximately 531,518 shares were traded during mid-day trading, a decline of 76% from the average daily volume of 2,176,252 shares. The stock had previously closed at $58.06.

Wall Street Analysts Forecast Growth

A number of analysts have commented on LMND shares. Cantor Fitzgerald restated an “overweight” rating on shares of Lemonade in a research note on Tuesday, May 26th. Piper Sandler decreased their price target on shares of Lemonade from $65.00 to $62.00 and set a “neutral” rating for the company in a research note on Thursday, April 30th. UBS Group set a $75.00 price target on shares of Lemonade in a research note on Thursday, May 21st. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a research note on Tuesday, April 21st. Finally, Truist Financial decreased their price objective on Lemonade from $98.00 to $70.00 and set a “buy” rating for the company in a report on Wednesday, April 29th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $64.89.

Lemonade Stock Performance

The stock has a market cap of $4.03 billion, a P/E ratio of -28.02 and a beta of 1.83. The company’s 50 day moving average price is $60.03 and its 200-day moving average price is $67.92.

Lemonade (NYSE:LMND) last posted its earnings results on Wednesday, April 29th. The company reported ($0.47) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.58) by $0.11. The firm had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.51 million. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The business’s revenue was up 70.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.86) EPS. On average, analysts forecast that Lemonade, Inc. will post -1.69 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lemonade

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Lemonade by 8,080.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock worth $29,000 after acquiring an additional 404 shares during the period. Strategic Advocates LLC bought a new position in shares of Lemonade in the third quarter valued at approximately $33,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Lemonade in the fourth quarter valued at approximately $33,000. Torren Management LLC bought a new position in shares of Lemonade in the fourth quarter valued at approximately $35,000. Finally, NewEdge Advisors LLC bought a new position in shares of Lemonade in the first quarter valued at approximately $35,000. Institutional investors own 80.30% of the company’s stock.

Lemonade Company Profile

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.