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

Key Points

• Lemonade, Inc. (NYSE:LMND) has received an average analyst recommendation of "Reduce," with four sell ratings, one hold, and one buy recommendation.
• The average 12-month price target set by brokerages for Lemonade's stock is $30.50.
• Insider activity includes a major shareholder, Softbank Group Capital Ltd, selling 500,000 shares, reducing their ownership by 6.25%.

Shares of Lemonade, Inc. (NYSE:LMND - Get Free Report) have been given an average recommendation of "Reduce" by the six ratings firms that are currently covering the firm, Marketbeat.com reports. Four analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and one has given a buy recommendation to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $30.50.

Several research analysts have recently issued reports on the company. Wall Street Zen downgraded Lemonade from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. BMO Capital Markets upped their price target on shares of Lemonade from $15.00 to $23.00 and gave the company an "underperform" rating in a research report on Wednesday, July 2nd. Morgan Stanley reaffirmed an "underweight" rating and set a $26.00 price target (up previously from $24.00) on shares of Lemonade in a research note on Monday, July 14th. Finally, Keefe, Bruyette & Woods reissued an "underperform" rating and issued a $26.00 price objective (up previously from $22.00) on shares of Lemonade in a research note on Tuesday, July 1st.

Lemonade Trading Up 1.8%

NYSE LMND opened at $37.04 on Tuesday. The company has a market cap of $2.71 billion, a price-to-earnings ratio of -12.18 and a beta of 2.19. The company has a 50 day moving average of $39.81 and a 200-day moving average of $34.83. Lemonade has a 1-year low of $14.90 and a 1-year high of $53.85.

Lemonade (NYSE:LMND - Get Free Report) last released its earnings results on Wednesday, May 7th. The company reported ($0.86) EPS for the quarter, missing the consensus estimate of ($0.84) by ($0.02). Lemonade had a negative net margin of 38.90% and a negative return on equity of 36.72%. The business's revenue for the quarter was up 27.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.67) earnings per share. On average, equities research analysts forecast that Lemonade will post -3.03 earnings per share for the current year.

Insider Activity

In other news, major shareholder Softbank Group Capital Ltd sold 500,000 shares of the business's stock in a transaction that occurred on Monday, May 12th. The shares were sold at an average price of $32.25, for a total value of $16,125,000.00. Following the sale, the insider owned 7,498,723 shares of the company's stock, valued at $241,833,816.75. The trade was a 6.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider John Sheldon Peters sold 6,543 shares of Lemonade stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $45.00, for a total transaction of $294,435.00. Following the completion of the transaction, the insider owned 106,115 shares of the company's stock, valued at $4,775,175. This represents a 5.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,688,653 shares of company stock valued at $53,969,915 in the last 90 days. Insiders own 12.50% of the company's stock.

Institutional Trading of Lemonade

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in Lemonade by 14.9% in the first quarter. Vanguard Group Inc. now owns 6,138,444 shares of the company's stock worth $192,931,000 after buying an additional 794,952 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Lemonade by 7.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company's stock worth $19,244,000 after acquiring an additional 41,759 shares during the last quarter. Two Sigma Investments LP purchased a new stake in shares of Lemonade in the 4th quarter valued at $22,066,000. Voloridge Investment Management LLC purchased a new stake in shares of Lemonade in the 4th quarter valued at $21,310,000. Finally, Analyst IMS Investment Management Services Ltd. grew its holdings in shares of Lemonade by 80.7% during the 2nd quarter. Analyst IMS Investment Management Services Ltd. now owns 571,768 shares of the company's stock valued at $25,049,000 after purchasing an additional 255,368 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

Lemonade Company Profile

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.

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