Lemonade (NYSE:LMND) Issues Earnings Results

Key Points

• Lemonade reported a quarterly earnings per share (EPS) of ($0.60), exceeding analyst expectations of ($0.81), with revenues up 34.5% year-over-year at $164.10 million.
• The stock surged 28.7% during trading on the announcement day, reaching $47.62, with significant trading volume of nearly 9.7 million shares.
• Softbank Group sold 500,000 shares, reducing their stake in Lemonade by 6.25%, while insiders have offloaded a total of 1.69 million shares in the past 90 days.

Lemonade (NYSE:LMND - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.60) EPS for the quarter, topping analysts' consensus estimates of ($0.81) by $0.21, Zacks reports. Lemonade had a negative return on equity of 36.72% and a negative net margin of 38.90%. The business had revenue of $164.10 million during the quarter, compared to the consensus estimate of $160.88 million. During the same period in the previous year, the company posted ($0.81) earnings per share. The business's revenue for the quarter was up 34.5% on a year-over-year basis. Lemonade updated its FY 2025 guidance to EPS and its Q3 2025 guidance to EPS.

Lemonade Trading Up 28.7%

LMND stock traded up $10.62 during mid-day trading on Tuesday, reaching $47.62. The company's stock had a trading volume of 9,697,099 shares, compared to its average volume of 2,230,281. The business's 50 day moving average price is $39.81 and its 200 day moving average price is $34.83. Lemonade has a 12 month low of $14.90 and a 12 month high of $53.85. The company has a market cap of $3.49 billion, a price-to-earnings ratio of -15.66 and a beta of 2.19.

Insider Transactions at Lemonade

In other news, major shareholder Softbank Group Capital Ltd sold 500,000 shares of the business's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $32.25, for a total value 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 $241,833,816.75. The trade was a 6.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider John Sheldon Peters sold 6,543 shares of the stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $45.00, for a total value of $294,435.00. Following the completion of the sale, the insider owned 106,115 shares in the company, valued at approximately $4,775,175. The trade was a 5.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 1,688,653 shares of company stock worth $53,969,915. 12.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of LMND. NewEdge Advisors LLC bought a new position in Lemonade in the 1st quarter valued at about $35,000. AQR Capital Management LLC increased its stake in Lemonade by 107.3% during the 1st quarter. AQR Capital Management LLC now owns 30,490 shares of the company's stock valued at $958,000 after purchasing an additional 15,779 shares in the last quarter. Millennium Management LLC lifted its holdings in Lemonade by 255.2% during the first quarter. Millennium Management LLC now owns 329,934 shares of the company's stock valued at $10,370,000 after purchasing an additional 237,044 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its holdings in Lemonade by 7.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company's stock valued at $19,244,000 after buying an additional 41,759 shares during the period. Institutional investors own 80.30% of the company's stock.

Analyst Ratings Changes

LMND has been the topic of several research analyst reports. BMO Capital Markets lifted their price target on Lemonade from $15.00 to $23.00 and gave the company an "underperform" rating in a research report on Wednesday, July 2nd. Wall Street Zen cut shares of Lemonade from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th. Keefe, Bruyette & Woods reissued an "underperform" rating and issued a $26.00 target price (up previously from $22.00) on shares of Lemonade in a research note on Tuesday, July 1st. Finally, Morgan Stanley reiterated an "underweight" rating and set a $26.00 target price (up from $24.00) on shares of Lemonade in a research note 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 assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $30.50.

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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