Lemonade (NYSE:LMND) Given New $75.00 Price Target at Citizens Jmp

Key Points

• Citizens JMP cut its Lemonade price target from $80 to $75 but maintained a “market outperform” rating; the new target implies 88.53% upside from the prior close.
• Analyst views are mixed: Lemonade has a consensus “Hold” rating and an average price target of $62.38, with four Buy, four Hold, and one Sell rating.
• Q3 revenue rose 72.8% year over year to $336.1 million, beating estimates, and the $0.56-per-share loss was slightly narrower than expected. The company remains unprofitable, and its reported loss per share widened from $0.51 a year earlier.

Lemonade (NYSE:LMND - Get Free Report) had its target price cut by analysts at Citizens Jmp from $80.00 to $75.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a "market outperform" rating on the stock. Citizens Jmp's target price suggests a potential upside of 88.53% from the stock's previous close.

Several other brokerages also recently issued reports on LMND. Piper Sandler cut their price target on shares of Lemonade from $51.00 to $47.00 and set a "neutral" rating for the company in a report on Friday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research note on Thursday, October 15th. Morgan Stanley dropped their price objective on shares of Lemonade from $56.00 to $48.00 and set an "equal weight" rating for the company in a report on Tuesday, October 6th. Wall Street Zen upgraded shares of Lemonade from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. Finally, Keefe, Bruyette & Woods upgraded shares of Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 target price for the company in a research note on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $62.38.

Lemonade Stock Performance

Shares of NYSE LMND traded down $1.70 during midday trading on Friday, reaching $39.78. 346,954 shares of the company traded hands, compared to its average volume of 1,736,513. The firm has a market cap of $3.08 billion, a PE ratio of -21.63 and a beta of 1.98. The stock's 50-day simple moving average is $46.94 and its 200-day simple moving average is $57.89. Lemonade has a 12 month low of $39.31 and a 12 month high of $99.90.

Lemonade (NYSE:LMND - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported ($0.56) EPS for the quarter, beating the consensus estimate of ($0.58) by $0.02. Lemonade had a negative net margin of 14.19% and a negative return on equity of 26.78%. The company had revenue of $336.10 million for the quarter, compared to the consensus estimate of $322.74 million. During the same quarter in the previous year, the company earned ($0.51) EPS. The firm's revenue for the quarter was up 72.8% compared to the same quarter last year. On average, equities research analysts expect that Lemonade will post -1.83 EPS for the current year.

Insiders Place Their Bets

In related news, insider Maya Prosor sold 1,040 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total transaction of $56,815.20. Following the transaction, the insider owned 186,533 shares in the company, valued at $10,190,297.79. This represents a 0.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Peters sold 2,249 shares of the company's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $54.45, for a total transaction of $122,458.05. Following the transaction, the insider owned 73,834 shares in the company, valued at approximately $4,020,261.30. This trade represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last 90 days, insiders sold 15,148 shares of company stock valued at $804,250. 12.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lemonade

A number of institutional investors have recently modified their holdings of the stock. Fifth Third Bancorp lifted its position in shares of Lemonade by 106.4% during the third quarter. Fifth Third Bancorp now owns 55,353 shares of the company's stock worth $2,499,000 after purchasing an additional 28,531 shares in the last quarter. Fulcrum Asset Management LLP bought a new stake in shares of Lemonade during the third quarter valued at approximately $266,000. Commonwealth Equity Services LLC increased its holdings in shares of Lemonade by 12.2% in the third quarter. Commonwealth Equity Services LLC now owns 14,940 shares of the company's stock valued at $674,000 after purchasing an additional 1,626 shares in the last quarter. Ascent Wealth Partners LLC increased its holdings in shares of Lemonade by 11.8% in the third quarter. Ascent Wealth Partners LLC now owns 5,786 shares of the company's stock valued at $261,000 after purchasing an additional 612 shares in the last quarter. Finally, Sterling Capital Management LLC increased its holdings in shares of Lemonade by 838.3% in the third quarter. Sterling Capital Management LLC now owns 2,374 shares of the company's stock valued at $107,000 after purchasing an additional 2,121 shares in the last quarter. 80.30% of the stock is owned by institutional investors.

Lemonade News Roundup

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q3 revenue rose 72.8% year over year to $336.1 million, topping the $322.7 million consensus estimate. The loss of $0.56 per share was also narrower than the $0.58 loss analysts expected. Read More.
• Positive Sentiment: Lemonade forecast Q4 revenue of $342 million to $346 million, above the $341.1 million FactSet estimate, pointing to continued growth. Read More.
• Positive Sentiment: The company completed nationwide availability of renters insurance by launching in Minnesota, expanding the reach of its first product offered in all 50 states and Washington, D.C. Read More.
• Negative Sentiment: Despite the earnings and revenue beats, LMND shares came under pressure after the report. The quarterly loss per share widened from $0.51 a year earlier, while coverage highlighted rising expense headwinds and continued negative profitability as investor concerns. Read More. · Read More.

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.

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