Lemonade, Inc. (NYSE:LMND) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Lemonade, Inc. has received an average rating of "Reduce" from seven brokerages, with four analysts assigning a sell rating and one giving a strong buy rating.
• The company reported a revenue increase of 34.5% year-over-year, reaching $164.10 million for the quarter, surpassing analyst expectations.
• Insider trading activity was noted, with COO Adina Eckstein selling 5,000 shares for approximately $245,000, indicating a decrease in personal investment in the company.

Shares of Lemonade, Inc. (NYSE:LMND - Get Free Report) have been given an average rating of "Reduce" by the seven brokerages that are covering the stock, Marketbeat.com reports. Four analysts have rated the stock with a sell rating, one has given a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokers that have covered the stock in the last year is $41.1429.

A number of equities analysts recently commented on the company. Keefe, Bruyette & Woods reiterated an "underperform" rating and set a $26.00 price target (up previously from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. BMO Capital Markets lifted their price target on Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a report on Monday, August 18th. Morgan Stanley reiterated an "underweight" rating on shares of Lemonade in a report on Monday, August 18th. Cantor Fitzgerald upgraded Lemonade to a "strong-buy" rating in a report on Wednesday, August 13th. Finally, Piper Sandler lifted their price target on Lemonade from $55.00 to $60.00 and gave the stock a "neutral" rating in a report on Wednesday, September 17th.

Insider Transactions at Lemonade

In other news, insider John Sheldon Peters sold 2,718 shares of the business's stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $50.34, for a total transaction of $136,824.12. Following the completion of the sale, the insider owned 102,397 shares in the company, valued at $5,154,664.98. The trade was a 2.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO Adina Eckstein sold 5,000 shares of the business'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 sale, the chief operating officer owned 189,653 shares of the company's stock, valued at approximately $9,292,997. This represents a 2.57% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 8,000 shares of company stock valued at $396,020 in the last quarter. 12.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lemonade

A number of institutional investors have recently made changes to their positions in LMND. Ameriprise Financial Inc. boosted its holdings in shares of Lemonade by 697.4% during the fourth quarter. Ameriprise Financial Inc. now owns 98,697 shares of the company's stock worth $3,620,000 after acquiring an additional 86,320 shares during the period. Millennium Management LLC boosted its holdings in shares of Lemonade by 67.4% during the fourth quarter. Millennium Management LLC now owns 92,890 shares of the company's stock worth $3,407,000 after acquiring an additional 37,398 shares during the period. Jefferies Financial Group Inc. acquired a new stake in shares of Lemonade in the fourth quarter valued at approximately $4,457,000. GAMMA Investing LLC raised its position in shares of Lemonade by 35,901.8% in the first quarter. GAMMA Investing LLC now owns 19,801 shares of the company's stock valued at $630,000 after buying an additional 19,746 shares in the last quarter. Finally, Rhumbline Advisers raised its position in shares of Lemonade by 2.6% in the first quarter. Rhumbline Advisers now owns 77,706 shares of the company's stock valued at $2,442,000 after buying an additional 2,001 shares in the last quarter. Institutional investors own 80.30% of the company's stock.

Lemonade Stock Performance

LMND opened at $57.54 on Wednesday. Lemonade has a 52-week low of $15.27 and a 52-week high of $62.00. The firm has a market capitalization of $4.25 billion, a PE ratio of -20.33 and a beta of 2.28. The business's 50-day simple moving average is $49.99 and its 200 day simple moving average is $39.74.

Lemonade (NYSE:LMND - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported ($0.60) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.81) by $0.21. Lemonade had a negative return on equity of 36.12% and a negative net margin of 33.96%.The business had revenue of $164.10 million for the quarter, compared to analyst estimates of $160.88 million. During the same quarter in the prior year, the company posted ($0.81) earnings per share. Lemonade's revenue was up 34.5% on a year-over-year basis. Lemonade has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, research analysts forecast 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.

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