Lemonade (NYSE:LMND) Price Target Raised to $45.00

Key Points

• Morgan Stanley has raised Lemonade's price target from $43.00 to $45.00, despite maintaining an "underweight" rating, indicating a potential downside of 16.45% from the stock's previous close.
• The company reported a 34.5% increase in revenue year-over-year, with earnings per share of ($0.60), beating analysts' estimates by $0.21.
• Shares of Lemonade traded down 4.0% to $53.86 during trading hours, and the stock has experienced significant volatility, with a 12-month low of $15.27 and a high of $62.00.

Lemonade (NYSE:LMND - Get Free Report) had its target price boosted by research analysts at Morgan Stanley from $43.00 to $45.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has an "underweight" rating on the stock. Morgan Stanley's price objective indicates a potential downside of 16.45% from the stock's previous close.

LMND has been the topic of a number of other research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research note on Saturday, September 27th. Wall Street Zen raised shares of Lemonade from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Cantor Fitzgerald raised shares of Lemonade to a "strong-buy" rating in a research note on Wednesday, August 13th. Keefe, Bruyette & Woods reissued an "underperform" rating and set a $26.00 price objective (up previously from $22.00) on shares of Lemonade in a research note on Tuesday, July 1st. Finally, BMO Capital Markets boosted their price objective on shares of Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a research note on Monday, August 18th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $43.86.

Lemonade Stock Down 4.0%

Shares of LMND traded down $2.24 during trading hours on Tuesday, reaching $53.86. 1,487,470 shares of the company traded hands, compared to its average volume of 2,329,013. The company's fifty day moving average price is $52.30 and its two-hundred day moving average price is $40.97. The company has a market capitalization of $3.98 billion, a price-to-earnings ratio of -19.25 and a beta of 2.24. Lemonade has a 12 month low of $15.27 and a 12 month high of $62.00.

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

Insider Activity

In other Lemonade news, insider John Sheldon Peters sold 2,718 shares of Lemonade stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $50.34, for a total value of $136,824.12. Following the completion of the transaction, the insider directly owned 102,397 shares of the company's stock, valued at approximately $5,154,664.98. The trade was a 2.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Adina Eckstein sold 5,000 shares of Lemonade stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $49.00, for a total transaction of $245,000.00. Following the completion of the transaction, the chief operating officer directly owned 189,653 shares of the company's stock, valued at $9,292,997. This trade represents a 2.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 8,000 shares of company stock valued at $396,020 over the last ninety days. Corporate insiders own 14.70% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. SVB Wealth LLC purchased a new position in Lemonade in the first quarter worth about $26,000. Estabrook Capital Management purchased a new position in Lemonade in the second quarter worth about $44,000. Migdal Insurance & Financial Holdings Ltd. raised its holdings in Lemonade by 30.7% in the second 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 during the last quarter. Golden State Wealth Management LLC raised its holdings in shares of Lemonade by 1,733.3% during the second quarter. Golden State Wealth Management LLC now owns 1,100 shares of the company's stock valued at $48,000 after purchasing an additional 1,040 shares during the last quarter. Finally, NewEdge Advisors LLC purchased a new position in shares of Lemonade during the first quarter valued at approximately $35,000. 80.30% of the stock is owned by hedge funds and other institutional investors.

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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