FY2027 EPS Estimates for Lemonade Increased by Analyst

Key Points

• DOWLING & PARTN raised its FY2027 EPS estimate for Lemonade to ($0.70) from ($1.00), signaling improved earnings expectations even though the company is still projected to be unprofitable.
• Lemonade’s latest quarterly results beat expectations, with EPS of ($0.47) versus a consensus of ($0.58) and revenue up 70.6% year over year to $258 million.
• Analyst sentiment remains mixed: the stock has a Hold consensus rating and average price target of $65.33, while insiders have also been selling shares recently.

Lemonade, Inc. (NYSE:LMND - Free Report) - Stock analysts at DOWLING & PARTN upped their FY2027 EPS estimates for Lemonade in a research note issued on Tuesday, July 7th. DOWLING & PARTN analyst J. Collins now forecasts that the company will post earnings of ($0.70) per share for the year, up from their prior estimate of ($1.00). The consensus estimate for Lemonade's current full-year earnings is ($1.71) per share.

A number of other analysts have also commented on the company. TD Cowen reissued a "hold" rating on shares of Lemonade in a research note on Monday, June 8th. Piper Sandler lowered their price objective on Lemonade from $65.00 to $62.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Citizens Jmp dropped their price objective on shares of Lemonade from $85.00 to $80.00 and set a "market outperform" rating for the company in a report on Thursday, April 30th. UBS Group set a $75.00 target price on shares of Lemonade in a research report on Thursday, May 21st. Finally, Keefe, Bruyette & Woods boosted their target price on shares of Lemonade from $44.00 to $48.00 and gave the stock an "underperform" rating in a report on Wednesday. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $65.33.

Lemonade Stock Down 1.1%

Shares of LMND opened at $70.26 on Friday. Lemonade has a 12-month low of $35.70 and a 12-month high of $99.90. The business has a 50-day simple moving average of $58.73 and a two-hundred day simple moving average of $65.09. The stock has a market cap of $5.40 billion, a PE ratio of -37.57 and a beta of 1.79.

Lemonade (NYSE:LMND - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, beating analysts' consensus estimates of ($0.58) by $0.11. Lemonade had a negative return on equity of 26.52% 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 company earned ($0.86) EPS. Lemonade's revenue was up 70.6% compared to the same quarter last year.

Insider Activity

In other news, insider Maya Prosor sold 1,220 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the completion of the sale, the insider owned 187,573 shares of the company's stock, valued at approximately $9,973,256.41. This represents a 0.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 Sheldon Peters sold 3,608 shares of the firm's stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $52.94, for a total value of $191,007.52. Following the transaction, the insider owned 81,386 shares of the company's stock, valued at $4,308,574.84. This trade represents a 4.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 have sold a total of 10,007 shares of company stock worth $620,201 over the last ninety days. Company insiders own 14.70% of the company's stock.

Institutional Trading of Lemonade

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd lifted its position in shares of Lemonade by 8,080.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company's stock worth $29,000 after purchasing an additional 404 shares during the period. Strategic Advocates LLC bought a new stake in shares of Lemonade in the 3rd quarter valued at $33,000. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Lemonade during the fourth quarter worth $33,000. Torren Management LLC acquired a new stake in shares of Lemonade during the fourth quarter worth $35,000. Finally, NewEdge Advisors LLC bought a new position in Lemonade during the first quarter worth $35,000. Institutional investors and hedge funds own 80.30% of the company's stock.

More Lemonade News

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on Lemonade to $48, which signals some improved confidence in the company’s outlook even though the firm kept an underperform rating. Lemonade Price Target Raised to $48.00 at Keefe, Bruyette & Woods
• Positive Sentiment: Morgan Stanley reaffirmed its equal weight rating and maintained a $75 price target, suggesting the stock still has some upside potential from current levels. Lemonade Receives Equal Weight Rating from Morgan Stanley
• Positive Sentiment: Lemonade’s recent earnings results showed revenue growth of 70.6% year over year and an EPS beat versus expectations, reinforcing the company’s top-line momentum. Lemonade Stock Performance and Earnings
• Neutral Sentiment: Analysts continue to be split on the name, with a consensus rating of Hold and a consensus target near $65.33, reflecting uncertainty after the stock’s strong run. Lemonade Analyst Ratings
• Negative Sentiment: Insider John Sheldon Peters sold 3,444 shares, adding to recent insider selling and potentially weighing on investor sentiment. Lemonade Insider Sale
• Negative Sentiment: Commentary from The Motley Fool said the stock is no longer a buy after its sharp rally, arguing that the recent move has left Lemonade looking more fairly valued than undervalued. Why Lemonade Stock Wilted by Almost 9% on Wednesday

About Lemonade

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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