Lemonade (NYSE:LMND) Shares Down 10.8% - What's Next?

Key Points

• Lemonade Inc. (NYSE:LMND) shares fell 10.8%, trading as low as $45.54, with trading volume increasing by 25% compared to the average daily volume.
• Equities research analysts have a consensus rating of "Reduce" for Lemonade, with price targets ranging from $15.00 to $30.50.
• Insider selling has been significant, with major shareholder Softbank selling 500,000 shares, and total insider sales in the past three months amounting to 1.37 million shares.

Lemonade, Inc. (NYSE:LMND - Get Free Report) shares were down 10.8% during mid-day trading on Thursday . The company traded as low as $45.95 and last traded at $45.54. Approximately 2,864,001 shares traded hands during mid-day trading, an increase of 25% from the average daily volume of 2,283,248 shares. The stock had previously closed at $51.07.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on LMND shares. BMO Capital Markets upped their price objective on shares of Lemonade from $15.00 to $23.00 and gave the company an "underperform" rating in a report on Wednesday, July 2nd. Morgan Stanley reaffirmed an "underweight" rating and set a $26.00 target price (up previously from $24.00) on shares of Lemonade in a research note on Monday, July 14th. Keefe, Bruyette & Woods reaffirmed an "underperform" rating and set a $26.00 target price (up previously from $22.00) on shares of Lemonade in a research note on Tuesday, July 1st. Finally, Wall Street Zen lowered shares of Lemonade from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. Five analysts have rated the stock with a sell rating, one has given a hold rating and one has issued a buy rating to the company's stock. Based on data from MarketBeat.com, Lemonade has a consensus rating of "Reduce" and an average price target of $30.50.

Lemonade Price Performance

The firm has a market capitalization of $3.47 billion, a PE ratio of -16.71 and a beta of 2.19. The business's 50-day moving average price is $40.49 and its 200-day moving average price is $35.03.

Lemonade (NYSE:LMND - Get Free Report) last posted its quarterly earnings data 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. Lemonade had a negative net margin of 33.96% and a negative return on equity of 35.34%. The firm had revenue of $164.10 million for the quarter, compared to analyst estimates of $160.88 million. During the same period last year, the firm posted ($0.81) EPS. Lemonade's quarterly revenue was up 34.5% on a year-over-year basis. Equities analysts forecast that Lemonade, Inc. will post -3.03 earnings per share for the current year.

Insider Activity at Lemonade

In other Lemonade news, major shareholder Softbank Group Capital Ltd sold 500,000 shares of the firm's stock in a transaction on 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 sale, the insider owned 7,498,723 shares of the company's stock, valued at approximately $241,833,816.75. This trade represents a 6.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Adina Eckstein sold 5,000 shares of the firm's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $45.00, for a total value of $225,000.00. Following the completion of the sale, the chief operating officer directly owned 189,653 shares of the company's stock, valued at approximately $8,534,385. This trade represents a 2.57% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,372,531 shares of company stock worth $44,125,876 in the last three months. Insiders own 14.70% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in LMND. Vanguard Group Inc. raised its stake in Lemonade by 14.9% in the 1st quarter. Vanguard Group Inc. now owns 6,138,444 shares of the company's stock valued at $192,931,000 after purchasing an additional 794,952 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Lemonade by 7.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company's stock valued at $19,244,000 after purchasing an additional 41,759 shares during the last quarter. Two Sigma Investments LP acquired a new position in Lemonade in the 4th quarter valued at about $22,066,000. Voloridge Investment Management LLC acquired a new position in Lemonade in the 4th quarter valued at about $21,310,000. Finally, Analyst IMS Investment Management Services Ltd. raised its stake in Lemonade by 80.7% in the 2nd quarter. Analyst IMS Investment Management Services Ltd. now owns 571,768 shares of the company's stock valued at $25,049,000 after purchasing an additional 255,368 shares during the last quarter. Institutional investors and hedge funds own 80.30% of the company's stock.

Lemonade Company Profile

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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