Lemonade (NYSE:LMND) Cut to Sell at Wall Street Zen

Key Points

• Lemonade's stock has been dropped from hold to sell by Wall Street Zen, reflecting a negative outlook from analysts.
• The company reported a loss per share of ($0.86) in its latest quarterly earnings, falling short of the consensus estimates and continuing a trend of negative earnings.
• Insider selling has increased, with notable transactions including a major shareholder selling 500,000 shares for approximately $16.1 million, indicating a potential lack of confidence from insiders.

Wall Street Zen lowered shares of Lemonade (NYSE:LMND - Free Report) from a hold rating to a sell rating in a research note published on Saturday morning.

A number of other equities analysts have also recently issued reports on the stock. Keefe, Bruyette & Woods restated an "underperform" rating and issued a $26.00 price objective (up previously from $22.00) on shares of Lemonade in a research report on Tuesday, July 1st. BMO Capital Markets boosted 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. Finally, Morgan Stanley reiterated an "underweight" rating and set a $26.00 price target (up previously from $24.00) on shares of Lemonade in a research report on Monday, July 14th. Five equities research analysts have rated the stock with a sell rating, one has given a hold rating and one has given a buy rating to the company's stock. According to data from MarketBeat.com, Lemonade currently has a consensus rating of "Reduce" and a consensus target price of $30.50.

Lemonade Trading Down 6.0%

Shares of LMND stock traded down $2.33 during mid-day trading on Friday, reaching $36.55. The stock had a trading volume of 2,619,035 shares, compared to its average volume of 1,937,271. The stock's 50-day moving average price is $39.31 and its two-hundred day moving average price is $34.67. Lemonade has a 52-week low of $14.90 and a 52-week high of $53.85. The firm has a market capitalization of $2.68 billion, a PE ratio of -12.02 and a beta of 2.20.

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

Insider Buying and Selling at Lemonade

In other Lemonade news, major shareholder Softbank Group Capital Ltd sold 500,000 shares of the firm'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 transaction of $16,125,000.00. Following the completion of the transaction, the insider owned 7,498,723 shares of the company's stock, valued at approximately $241,833,816.75. This trade represents a 6.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Adina Eckstein sold 5,000 shares of the firm'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 transaction of $225,000.00. Following the transaction, the chief operating officer directly owned 189,653 shares of the company's stock, valued at $8,534,385. This represents a 2.57% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,509,045 shares of company stock valued at $78,760,964. Corporate insiders own 12.50% of the company's stock.

Hedge Funds Weigh In On Lemonade

Institutional investors and hedge funds have recently made changes to their positions in the business. SVB Wealth LLC bought a new position in shares of Lemonade during the first quarter valued at approximately $26,000. Quarry LP lifted its stake in shares of Lemonade by 300.4% in the fourth quarter. Quarry LP now owns 933 shares of the company's stock worth $34,000 after buying an additional 700 shares in the last quarter. NewEdge Advisors LLC bought a new position in shares of Lemonade in the first quarter worth approximately $35,000. Hollencrest Capital Management bought a new position in shares of Lemonade in the first quarter worth approximately $41,000. Finally, Russell Investments Group Ltd. lifted its stake in shares of Lemonade by 318.8% in the fourth quarter. Russell Investments Group Ltd. now owns 1,139 shares of the company's stock worth $42,000 after buying an additional 867 shares in the last quarter. 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.