Sparta 24 Ltd. Makes New Investment in Lemonade, Inc. $LMND

Key Points

• Sparta 24 Ltd. bought 169,338 shares of Lemonade (~$12.05M) in Q4, making the position about 10.7% of Sparta's portfolio and the firm's 4th largest holding; Sparta owned roughly 0.23% of Lemonade at filing.
• Lemonade beat estimates in its latest quarter with EPS of -$0.47 (vs. -$0.58 expected) and revenue of $258M (up 70.6% year‑over‑year), but the company remains unprofitable with negative ROE and net margin.
• Analyst sentiment is mixed—five Buys, one Hold and three Sells—with a consensus "Hold" rating and average price target of $64.88, while institutional investors own about 80.3% of the stock.

Sparta 24 Ltd. bought a new stake in Lemonade, Inc. (NYSE:LMND - Free Report) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 169,338 shares of the company's stock, valued at approximately $12,053,000. Lemonade accounts for about 10.7% of Sparta 24 Ltd.'s portfolio, making the stock its 4th largest holding. Sparta 24 Ltd. owned about 0.23% of Lemonade as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Bayforest Capital Ltd acquired a new stake in Lemonade in the 3rd quarter valued at $25,000. Strategic Advocates LLC purchased a new stake in shares of Lemonade in the third quarter worth about $33,000. NewEdge Advisors LLC purchased a new stake in shares of Lemonade in the first quarter worth about $35,000. Torren Management LLC acquired a new stake in shares of Lemonade in the fourth quarter valued at about $35,000. Finally, Tsfg LLC purchased a new stake in shares of Lemonade during the 3rd quarter valued at about $54,000. Institutional investors and hedge funds own 80.30% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on LMND shares. Wolfe Research set a $44.00 price target on Lemonade in a research report on Tuesday, February 24th. Piper Sandler dropped their price objective on shares of Lemonade from $65.00 to $62.00 and set a "neutral" rating on the stock in a research note on Thursday. Citizens Jmp reduced their target price on shares of Lemonade from $85.00 to $80.00 and set a "market outperform" rating on the stock in a research report on Thursday. Morgan Stanley raised shares of Lemonade from an "equal weight" rating to an "overweight" rating and raised their price target for the company from $80.00 to $85.00 in a report on Tuesday, March 17th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research note on Tuesday, April 21st. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $64.88.

Insider Buying and Selling

In other Lemonade news, insider John Sheldon Peters sold 3,571 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $52.50, for a total transaction of $187,477.50. Following the completion of the transaction, the insider directly owned 76,729 shares of the company's stock, valued at $4,028,272.50. This trade represents a 4.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders have sold 5,567 shares of company stock worth $287,517. Corporate insiders own 14.70% of the company's stock.

Lemonade Stock Up 1.4%

LMND stock opened at $56.76 on Friday. The stock's 50 day moving average is $60.07 and its two-hundred day moving average is $68.32. Lemonade, Inc. has a 52-week low of $28.47 and a 52-week high of $99.90. The company has a market capitalization of $4.36 billion, a PE ratio of -30.35 and a beta of 2.04.

Lemonade (NYSE:LMND - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported ($0.47) EPS for the quarter, beating the consensus estimate of ($0.58) by $0.11. Lemonade had a negative return on equity of 26.42% and a negative net margin of 16.44%.The company 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 business posted ($0.86) EPS. The business's revenue was up 70.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Lemonade, Inc. will post -1.74 EPS for the current year.

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.

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