Lemonade (NYSE:LMND) Given New $56.00 Price Target at Morgan Stanley

Key Points

• Morgan Stanley lowered Lemonade’s price target to $56 from $65 while maintaining an “equal weight” rating, implying 11.85% upside from the prior close.
• Analyst sentiment remains mixed but centered on “Hold”: Lemonade has a consensus target of $64.50, with four Buy, four Hold, and one Sell rating.
• Lemonade’s latest quarterly revenue rose 79.4% year over year to $294.4 million and exceeded estimates, although the company remained unprofitable with a loss of $0.56 per share and negative margins.

Lemonade (NYSE:LMND - Get Free Report) had its price objective decreased by Morgan Stanley from $65.00 to $56.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Morgan Stanley's price objective would indicate a potential upside of 11.85% from the stock's previous close.

LMND has been the subject of several other research reports. Piper Sandler dropped their target price on shares of Lemonade from $75.00 to $51.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lemonade in a research note on Friday, July 17th. Truist Financial cut their price objective on Lemonade from $98.00 to $70.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Keefe, Bruyette & Woods raised Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 target price on the stock in a report on Thursday, July 30th. Finally, TD Cowen reiterated a "hold" rating on shares of Lemonade in a report on Monday, June 8th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $64.50.

Lemonade Price Performance

NYSE:LMND opened at $50.07 on Wednesday. The firm has a 50-day moving average of $60.30 and a two-hundred day moving average of $60.58. The stock has a market cap of $3.88 billion, a P/E ratio of -27.36 and a beta of 1.84. Lemonade has a 1-year low of $46.16 and a 1-year high of $99.90.

Lemonade (NYSE:LMND - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The company reported ($0.56) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.56). The firm had revenue of $294.40 million during the quarter, compared to analyst estimates of $291.01 million. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%.Lemonade's quarterly revenue was up 79.4% on a year-over-year basis. During the same quarter last year, the firm earned ($0.60) EPS. As a group, equities analysts expect that Lemonade will post -1.83 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Maya Prosor sold 1,220 shares of the business's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total transaction of $64,867.40. Following the completion of the transaction, the insider owned 187,573 shares of the company's stock, valued at approximately $9,973,256.41. The trade was a 0.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 11,000 shares of the company's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $52.55, for a total transaction of $578,050.00. Following the transaction, the insider owned 76,942 shares of the company's stock, valued at $4,043,302.10. This represents a 12.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 21,007 shares of company stock valued at $1,198,251 in the last 90 days. Insiders own 12.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Bank of America Corp DE boosted its position in shares of Lemonade by 52.1% during the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company's stock valued at $22,591,000 after purchasing an additional 123,484 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Lemonade by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 6,305,453 shares of the company's stock worth $448,822,000 after purchasing an additional 26,312 shares in the last quarter. Lido Advisors LLC acquired a new stake in Lemonade during the first quarter valued at approximately $1,318,000. Clear Street Group Inc. acquired a new stake in Lemonade during the fourth quarter valued at approximately $2,448,000. Finally, Halter Ferguson Financial Inc. boosted its holdings in Lemonade by 4.3% during the fourth quarter. Halter Ferguson Financial Inc. now owns 600,863 shares of the company's stock worth $42,769,000 after buying an additional 24,957 shares in the last quarter. Institutional investors own 80.30% of the company's stock.

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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