Lemonade (NYSE:LMND) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Lemonade from “Hold” to “Sell,” while the broader analyst consensus remains “Hold” with an average price target of $64.50.
• Lemonade shares opened at $53.29, well below their 52-week high of $99.90. The company reported quarterly revenue of $294.4 million, up 79.4% year over year, but remained unprofitable with a loss of $0.56 per share.
• Insiders sold 21,007 shares worth approximately $1.2 million over the past quarter, while institutional investors own 80.3% of the company.

Lemonade (NYSE:LMND - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

LMND has been the topic of a number of other research reports. Morgan Stanley dropped their target price on shares of Lemonade from $65.00 to $56.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Truist Financial reduced their price target on shares of Lemonade from $98.00 to $70.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. TD Cowen reaffirmed a "hold" rating on shares of Lemonade in a research note on Monday, June 8th. Citizens Jmp dropped their price objective on shares of Lemonade from $85.00 to $80.00 and set a "market outperform" rating on the stock in a report on Thursday, April 30th. Finally, Keefe, Bruyette & Woods raised shares of Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 price objective on the stock in a research report on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Lemonade has a consensus rating of "Hold" and an average price target of $64.50.

Lemonade Stock Performance

Shares of LMND stock opened at $53.29 on Friday. Lemonade has a fifty-two week low of $46.16 and a fifty-two week high of $99.90. The stock has a 50 day simple moving average of $60.00 and a two-hundred day simple moving average of $60.00. The company has a market cap of $4.12 billion, a P/E ratio of -29.12 and a beta of 1.84.

Lemonade (NYSE:LMND - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.56). The firm had revenue of $294.40 million for the quarter, compared to analysts' expectations of $291.01 million. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%.The company's revenue for the quarter was up 79.4% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.60) EPS. On average, research analysts predict that Lemonade will post -1.85 earnings per share for the current year.

Insiders Place Their Bets

In other Lemonade news, insider Maya Prosor sold 1,220 shares of Lemonade stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total value of $64,867.40. Following the sale, 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 is accessible through this link. 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 business's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $52.55, for a total transaction of $578,050.00. Following the completion of the transaction, the insider owned 76,942 shares in the company, valued at approximately $4,043,302.10. The trade was a 12.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 21,007 shares of company stock worth $1,198,251 over the last quarter. 12.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lemonade

A number of hedge funds have recently modified their holdings of LMND. TD Waterhouse Canada Inc. grew its holdings in Lemonade by 3.4% during the fourth quarter. TD Waterhouse Canada Inc. now owns 3,671 shares of the company's stock valued at $261,000 after purchasing an additional 121 shares during the period. AQR Capital Management LLC raised its stake in shares of Lemonade by 0.7% in the fourth quarter. AQR Capital Management LLC now owns 21,569 shares of the company's stock valued at $1,535,000 after buying an additional 159 shares during the period. The Manufacturers Life Insurance Company raised its stake in shares of Lemonade by 0.8% in the fourth quarter. The Manufacturers Life Insurance Company now owns 32,431 shares of the company's stock valued at $2,308,000 after buying an additional 259 shares during the period. CWM LLC lifted its position in shares of Lemonade by 14.5% during the 4th quarter. CWM LLC now owns 2,882 shares of the company's stock valued at $205,000 after buying an additional 364 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of Lemonade by 8,080.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company's stock valued at $29,000 after buying an additional 404 shares during the last quarter. Institutional investors own 80.30% of the company's stock.

About Lemonade

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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