Lemonade, Inc. (NYSE:LMND) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• Lemonade, Inc. has received an average rating of "Reduce" from seven research firms, with four analysts recommending a sell, one a hold, one a buy, and one a strong buy.
• The average twelve-month target price set by brokerages for Lemonade's stock is $48.00.
• Recent insider trading activity includes COO Adina Eckstein selling 5,000 shares for $245,000, representing a decrease in their holdings by 2.57%.

Shares of Lemonade, Inc. (NYSE:LMND - Get Free Report) have been given an average rating of "Reduce" by the seven research firms that are currently covering the company, MarketBeat Ratings reports. Four investment 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 twelve-month target price among brokerages that have covered the stock in the last year is $48.00.

LMND has been the subject of a number of research reports. Piper Sandler reduced their target price on shares of Lemonade from $60.00 to $55.00 and set a "neutral" rating for the company in a report on Friday, October 10th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research note on Wednesday, October 8th. Wall Street Zen raised shares of Lemonade from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Morgan Stanley raised their price objective on shares of Lemonade from $43.00 to $45.00 and gave the stock an "underweight" rating in a research note on Tuesday, October 7th. Finally, Keefe, Bruyette & Woods reaffirmed 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.

Insider Buying and Selling

In related news, COO Adina Eckstein sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The shares were 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 owned 189,653 shares of the company's stock, valued at approximately $9,292,997. This trade represents a 2.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider John Sheldon Peters sold 2,718 shares of the firm'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 transaction, the insider directly owned 102,397 shares of the company's stock, valued at $5,154,664.98. This represents a 2.59% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 8,000 shares of company stock valued at $396,020 in the last ninety days. Company insiders own 14.70% of the company's stock.

Institutional Investors Weigh In On Lemonade

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LMND. SVB Wealth LLC purchased a new stake in Lemonade in the 1st quarter worth approximately $26,000. NewEdge Advisors LLC purchased a new stake in Lemonade in the 1st quarter worth approximately $35,000. Hollencrest Capital Management purchased a new stake in Lemonade in the 1st quarter worth approximately $41,000. Estabrook Capital Management purchased a new stake in Lemonade in the 2nd quarter worth approximately $44,000. Finally, Migdal Insurance & Financial Holdings Ltd. lifted its position in Lemonade by 30.7% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,034 shares of the company's stock worth $45,000 after buying an additional 243 shares in the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

Lemonade Stock Performance

Shares of NYSE:LMND opened at $48.01 on Friday. The stock has a market capitalization of $3.55 billion, a price-to-earnings ratio of -16.96 and a beta of 2.24. Lemonade has a 1-year low of $17.91 and a 1-year high of $62.00. The company has a 50 day moving average price of $53.98 and a 200 day moving average price of $42.04.

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

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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