Lemonade (NYSE:LMND) Releases Earnings Results, Meets Expectations

Key Points

• Lemonade met earnings expectations, reporting quarterly EPS of -$0.56, while revenue reached $294.4 million, exceeding estimates of $291.01 million and rising 79.4% year over year.
• The stock fell 24.6% to $46.81 following the results, leaving Lemonade with a $3.6 billion market capitalization and continued negative profitability metrics.
• Analysts maintain a consensus “Hold” rating with an average price target of $66.78; institutional investors own 80.3% of the company, while insiders have sold roughly $620,000 of shares over the past 90 days.

Lemonade (NYSE:LMND - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported ($0.56) earnings per share for the quarter, meeting the consensus estimate of ($0.56), FiscalAI reports. The business had revenue of $294.40 million during the quarter, compared to analysts' expectations of $291.01 million. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The business's revenue for the quarter was up 79.4% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.60) EPS.

Lemonade Trading Down 24.6%

Shares of NYSE LMND traded down $15.30 during midday trading on Wednesday, reaching $46.81. 2,792,593 shares of the company were exchanged, compared to its average volume of 1,994,825. Lemonade has a 1 year low of $35.70 and a 1 year high of $99.90. The stock has a fifty day simple moving average of $61.61 and a 200 day simple moving average of $64.10. The stock has a market cap of $3.60 billion, a P/E ratio of -24.82 and a beta of 1.79.

Insider Buying and Selling at Lemonade

In other news, insider Maya Prosor sold 1,220 shares of the firm's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total value of $64,867.40. Following the completion of the sale, the insider owned 187,573 shares in the company, valued at approximately $9,973,256.41. This trade represents a 0.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 3,444 shares of Lemonade stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $79.00, for a total value of $272,076.00. Following the completion of the sale, the insider directly owned 77,942 shares in the company, valued at $6,157,418. This represents a 4.23% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 10,007 shares of company stock valued at $620,201. Corporate insiders own 12.20% of the company's stock.

Hedge Funds Weigh In On Lemonade

Institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd increased its stake in Lemonade by 8,080.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company's stock valued at $29,000 after purchasing an additional 404 shares during the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Lemonade during the 4th quarter worth about $33,000. Strive Financial Group LLC acquired a new stake in shares of Lemonade in the fourth quarter worth approximately $38,000. Macquarie Group Ltd. purchased a new stake in Lemonade in the fourth quarter valued at approximately $63,000. Finally, NewEdge Advisors LLC acquired a new position in Lemonade during the first quarter worth approximately $35,000. Institutional investors and hedge funds own 80.30% of the company's stock.

Wall Street Analyst Weigh In

LMND has been the topic of a number of recent research reports. Citizens Jmp cut their target price on shares of Lemonade from $85.00 to $80.00 and set a "market outperform" rating on the stock in a research note on Thursday, April 30th. UBS Group set a $75.00 price objective on Lemonade in a report on Thursday, May 21st. Piper Sandler upped their price target on Lemonade from $62.00 to $75.00 and gave the company a "neutral" rating in a report on Wednesday, July 15th. TD Cowen reiterated a "hold" rating on shares of Lemonade in a research note on Monday, June 8th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Lemonade in a research report on Tuesday, May 26th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Lemonade currently has a consensus rating of "Hold" and an average target price of $66.78.

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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