Lemonade, Inc. (LMND) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is mixed: Lemonade has a consensus “Hold” rating from nine brokerages, split between four buys, four holds and one sell. The average 12-month price target is $63.50, though several analysts recently lowered targets, including Morgan Stanley to $48 and Piper Sandler to $51.
• Recent operating results showed strong growth but ongoing losses: Quarterly revenue rose 79.4% year over year to $294.4 million, while adjusted EPS of negative $0.56 matched expectations. Analysts expect a full-year loss of approximately $1.83 per share.
• The stock remains well below its 52-week high: LMND opened at $45.27, compared with a 52-week range of $42.70 to $99.90, and trades below both its 50-day and 200-day moving averages. Institutional investors own 80.3% of the shares, while insiders have sold about $804,250 of stock over the past 90 days.

Lemonade, Inc. (NYSE:LMND - Get Free Report) has earned a consensus rating of "Hold" from the nine brokerages that are covering the stock, Marketbeat reports. One analyst has rated the stock with a sell recommendation, four have given a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $63.50.

Several research analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Lemonade from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. Morgan Stanley dropped their target price on shares of Lemonade from $56.00 to $48.00 and set an "equal weight" rating on the stock in a research note on Tuesday, October 6th. Keefe, Bruyette & Woods upgraded Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 price target for the company in a research note on Thursday, July 30th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lemonade in a research note on Thursday, October 15th. Finally, Piper Sandler reduced 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.

Insider Activity at Lemonade

In related news, insider Maya Prosor sold 1,040 shares of the company's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total value of $56,815.20. Following the transaction, the insider directly owned 186,533 shares in the company, valued at approximately $10,190,297.79. This represents a 0.55% 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 sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Peters sold 11,000 shares of Lemonade stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $52.55, for a total transaction of $578,050.00. Following the sale, the insider directly owned 76,942 shares of the company's stock, valued at $4,043,302.10. This represents a 12.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 15,148 shares of company stock worth $804,250. 12.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lemonade

A number of large investors have recently added to or reduced their stakes in LMND. Triumph Capital Management raised its position in Lemonade by 19.9% in the 2nd quarter. Triumph Capital Management now owns 2,436 shares of the company's stock worth $158,000 after purchasing an additional 405 shares during the period. Rare Wolf Capital LLC grew its stake in shares of Lemonade by 2.9% during the third quarter. Rare Wolf Capital LLC now owns 14,441 shares of the company's stock valued at $652,000 after buying an additional 408 shares during the last quarter. Fermata Advisors LLC increased its holdings in shares of Lemonade by 6.4% in the third quarter. Fermata Advisors LLC now owns 7,200 shares of the company's stock worth $325,000 after buying an additional 432 shares during the period. Corient Private Wealth LLC increased its holdings in shares of Lemonade by 7.7% in the fourth quarter. Corient Private Wealth LLC now owns 6,334 shares of the company's stock worth $451,000 after buying an additional 453 shares during the period. Finally, Ameritas Advisory Services LLC bought a new stake in shares of Lemonade in the 2nd quarter valued at about $30,000. Hedge funds and other institutional investors own 80.30% of the company's stock.

Lemonade Price Performance

LMND stock opened at $45.27 on Thursday. Lemonade has a 1 year low of $42.70 and a 1 year high of $99.90. The company's 50-day moving average is $48.11 and its 200-day moving average is $59.03. The stock has a market capitalization of $3.50 billion, a PE ratio of -24.74 and a beta of 1.87.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.56). The business had revenue of $294.40 million during the quarter, compared to the consensus estimate of $291.01 million. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%. The company's quarterly revenue was up 79.4% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.60) EPS. On average, analysts anticipate that Lemonade will post -1.83 earnings per share for the current fiscal year.

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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