Lemonade, Inc. (NYSE:LMND) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Consensus "Hold": Nine analysts give Lemonade an average rating of "Hold" (3 sell, 1 hold, 5 buy) with a 12‑month average price target of about $64.88.
• Recent quarterly results beat estimates—EPS of ($0.47) vs. ($0.58) expected and revenue of $258M vs. $251.5M—driven by 70.6% year‑over‑year revenue growth, but the company remains unprofitable with a negative net margin (16.44%) and analysts expect -1.67 EPS for the fiscal year.
• Insiders have been selling recently (e.g., John Sheldon Peters sold 3,571 shares) even as institutional investors hold roughly 80.3% of the stock and corporate insiders own about 14.7%.

Shares of Lemonade, Inc. (NYSE:LMND - Get Free Report) have earned a consensus recommendation of "Hold" from the nine analysts that are presently covering the firm, Marketbeat reports. Three analysts have rated the stock with a sell rating, one has issued a hold rating and five have assigned a buy rating to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $64.8750.

Several equities analysts recently weighed in on the stock. Morgan Stanley upgraded shares of Lemonade from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $80.00 to $85.00 in a research report on Tuesday, March 17th. Citigroup restated an "outperform" rating on shares of Lemonade in a research report on Friday, January 16th. Truist Financial reduced their price target on shares of Lemonade from $98.00 to $70.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. Wolfe Research set a $44.00 price target on shares of Lemonade in a research report on Tuesday, February 24th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a research report on Tuesday, April 21st.

Lemonade Price Performance

NYSE LMND opened at $52.98 on Thursday. Lemonade has a 1 year low of $28.71 and a 1 year high of $99.90. The firm has a market cap of $4.07 billion, a price-to-earnings ratio of -28.33 and a beta of 1.85. The company has a fifty day moving average price of $60.12 and a 200-day moving average price of $68.63.

Lemonade (NYSE:LMND - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported ($0.47) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.58) by $0.11. The firm had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.51 million. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The business's revenue was up 70.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.86) EPS. On average, research analysts anticipate that Lemonade will post -1.67 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider John Sheldon Peters sold 3,571 shares of the stock in a transaction dated 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 owned 76,729 shares in the company, valued at approximately $4,028,272.50. This represents a 4.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold a total of 5,567 shares of company stock worth $287,517 in the last three months. 14.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lemonade

Institutional investors and hedge funds have recently modified their holdings of the company. Bayforest Capital Ltd purchased a new stake in shares of Lemonade in the third quarter worth about $25,000. Caitong International Asset Management Co. Ltd increased its position in shares of Lemonade by 8,080.0% in the fourth 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 last quarter. Strategic Advocates LLC bought a new position in shares of Lemonade in the third quarter worth approximately $33,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Lemonade in the fourth quarter worth approximately $33,000. Finally, Torren Management LLC bought a new position in shares of Lemonade in the fourth quarter worth approximately $35,000. 80.30% of the stock is owned by hedge funds and other institutional investors.

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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