Lemonade, Inc. (NYSE:LMND) Given Consensus Rating of "Reduce" by Analysts

Key Points

• Lemonade, Inc. has received an average recommendation of "Reduce" from analysts, with four firms rating the stock as a sell, and the average one-year price target is approximately $40.43.
• Insider transactions revealed that COO Adina Eckstein sold 5,000 shares at an average price of $49.00, while other insiders also sold significant portions of their holdings.
• The company's latest earnings report showed a revenue increase of 34.5% year-over-year, despite a negative net margin of 33.96% for the quarter.

Lemonade, Inc. (NYSE:LMND - Get Free Report) has been given an average rating of "Reduce" by the seven ratings firms that are currently covering the stock, Marketbeat reports. Four equities research analysts have rated the stock with a sell recommendation, one has issued a hold recommendation, one has assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $40.4286.

Several brokerages have recently commented on LMND. Keefe, Bruyette & Woods reissued an "underperform" rating and issued a $26.00 price objective (up from $22.00) on shares of Lemonade in a research note on Tuesday, July 1st. BMO Capital Markets increased their price objective on Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a research note on Monday, August 18th. Wall Street Zen raised Lemonade from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Morgan Stanley reaffirmed an "underweight" rating on shares of Lemonade in a report on Monday, August 18th. Finally, Piper Sandler reaffirmed a "neutral" rating and issued a $55.00 target price on shares of Lemonade in a report on Thursday, August 14th.

Insider Activity at Lemonade

In other news, COO Adina Eckstein sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $49.00, for a total value of $245,000.00. Following the completion of the transaction, the chief operating officer directly owned 189,653 shares of the company's stock, valued at $9,292,997. This represents a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider John Sheldon Peters sold 6,543 shares of the company's stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $45.00, for a total value of $294,435.00. Following the completion of the transaction, the insider directly owned 106,115 shares of the company's stock, valued at approximately $4,775,175. This represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 16,543 shares of company stock valued at $764,435. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lemonade

Several institutional investors and hedge funds have recently bought and sold shares of the company. Newbridge Financial Services Group Inc. bought a new position in Lemonade during the second quarter valued at $76,000. FORA Capital LLC bought a new position in Lemonade during the second quarter valued at $816,000. Headlands Technologies LLC bought a new position in Lemonade during the second quarter valued at $155,000. Tower Research Capital LLC TRC grew its holdings in Lemonade by 1,259.9% during the second quarter. Tower Research Capital LLC TRC now owns 23,607 shares of the company's stock valued at $1,034,000 after purchasing an additional 21,871 shares during the period. Finally, Corient Private Wealth LLC bought a new position in Lemonade during the second quarter valued at $315,000. 80.30% of the stock is owned by institutional investors.

Lemonade Stock Performance

Shares of Lemonade stock traded down $2.44 on Friday, hitting $49.34. The company had a trading volume of 752,986 shares, compared to its average volume of 2,321,133. The stock has a market capitalization of $3.65 billion, a price-to-earnings ratio of -17.49 and a beta of 2.28. Lemonade has a 1 year low of $15.27 and a 1 year high of $60.41. The stock has a 50 day moving average of $46.17 and a 200-day moving average of $37.76.

Lemonade (NYSE:LMND - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported ($0.60) EPS for the quarter, topping the consensus estimate of ($0.81) by $0.21. The firm had revenue of $164.10 million during the quarter, compared to the consensus estimate of $160.88 million. Lemonade had a negative return on equity of 36.12% and a negative net margin of 33.96%.The company's quarterly revenue was up 34.5% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.81) earnings per share. Lemonade has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities analysts anticipate that Lemonade will post -3.03 earnings per share for the current year.

About Lemonade

Lemonade, Inc provides various insurance products through various channels in the United States, Europe, and the United Kingdom. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property.