Lemonade (NYSE:LMND) Stock Gets Price Target Cut from Truist Financial

Key Points

• Truist cut Lemonade’s price target from $70 to $60 but maintained a Buy rating; the revised target implies 51.46% upside from the prior close.
• Analyst views are mixed: Lemonade has a consensus Hold rating and an average price target of $61.12.
• Quarterly revenue climbed 72.8% year over year to $336.1 million, beating expectations, while the loss per share was narrower than forecast. Shares nevertheless fell Friday to $39.62, and the company remained unprofitable.

Lemonade (NYSE:LMND - Get Free Report) had its price objective reduced by equities researchers at Truist Financial from $70.00 to $60.00 in a report issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the stock. Truist Financial's price target would indicate a potential upside of 51.46% from the company's previous close.

LMND has been the topic of several other research reports. Piper Sandler cut their price objective on Lemonade from $51.00 to $47.00 and set a "neutral" rating on the stock in a research report on Friday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research report on Thursday, October 15th. Morgan Stanley lowered 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. Wall Street Zen raised shares of Lemonade from a "sell" rating to a "hold" rating in a report 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 price target for the company in a research report on Thursday, July 30th. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Lemonade has a consensus rating of "Hold" and an average price target of $61.12.

Lemonade Stock Performance

NYSE:LMND traded down $1.86 on Friday, hitting $39.62. The stock had a trading volume of 731,612 shares, compared to its average volume of 1,738,941. The stock has a market cap of $3.07 billion, a P/E ratio of -21.67 and a beta of 1.98. Lemonade has a 1 year low of $39.11 and a 1 year high of $99.90. The firm's fifty day simple moving average is $46.94 and its two-hundred day simple moving average is $57.89.

Lemonade (NYSE:LMND - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported ($0.56) EPS for the quarter, topping 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 firm had revenue of $336.10 million for the quarter, compared to analysts' expectations of $322.74 million. During the same quarter last year, the firm earned ($0.51) EPS. The company's quarterly revenue was up 72.8% compared to the same quarter last year. Equities research analysts predict that Lemonade will post -1.83 EPS for the current year.

Insiders Place Their Bets

In other news, insider Maya Prosor sold 1,040 shares of the company's stock in a transaction on Thursday, September 3rd. The stock was 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 of the company's stock, 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 Lemonade stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $54.45, for a total value of $122,458.05. Following the completion of the sale, the insider directly owned 73,834 shares of the company's stock, 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. Insiders sold 15,148 shares of company stock valued at $804,250 over the last three months. Company insiders own 12.20% of the company's stock.

Institutional Trading of Lemonade

Institutional investors have recently modified their holdings of the business. Allworth Financial LP lifted its stake in Lemonade by 115.2% in the 3rd quarter. Allworth Financial LP now owns 622 shares of the company's stock worth $28,000 after purchasing an additional 333 shares in the last quarter. Ameritas Advisory Services LLC bought a new position in Lemonade in the 2nd quarter valued at $30,000. State of Wyoming purchased a new position in shares of Lemonade during the 1st quarter valued at $42,000. Sterling Capital Management LLC grew its position in shares of Lemonade by 838.3% during the 3rd 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. Finally, Integrated Wealth Concepts LLC purchased a new position in shares of Lemonade during the 2nd quarter valued at $128,000. 80.30% of the stock is currently owned by hedge funds and other institutional investors.

More Lemonade News

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Third-quarter revenue rose 72.8% year over year to $336.1 million, exceeding analyst expectations of $322.7 million. Lemonade’s loss of $0.56 per share was also narrower than the $0.58 consensus estimate. Quarterly earnings report
• Positive Sentiment: The company forecast fourth-quarter revenue of $342 million to $346 million, slightly above the $341.1 million analyst estimate, suggesting continued top-line momentum. Fourth-quarter revenue outlook
• Neutral Sentiment: Citizens JMP lowered its price target to $75 from $80 but maintained a “market outperform” rating. Piper Sandler cut its target to $47 from $51 and kept a “neutral” rating. The reductions may weigh on sentiment, though both targets remain above the recent share price. Citizens JMP price-target update
• Negative Sentiment: LMND shares declined following the earnings release. Although revenue and the quarterly loss beat expectations, the company remained unprofitable, and coverage characterized rising expense pressures as a concern for investors evaluating whether rapid growth can translate into improved profitability. Q3 results and expense headwinds

Lemonade Company Profile

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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