Lemonade (NYSE:LMND) Trading Down 4.6% - Here's Why

Key Points

• Lemonade, Inc. shares fell by 4.6%, trading last at $54.20, with trading volume decreasing by 71% from average levels.
• Analyst ratings for Lemonade are mixed, with one rating it a strong buy, while four analysts have given it a sell rating, resulting in an average rating of "Reduce" and a price target of $40.43.
• The company reported a loss of ($0.60) EPS for the latest quarter, exceeding estimates, and showing a revenue increase of 34.5% year-over-year.

Lemonade, Inc. (NYSE:LMND - Get Free Report) dropped 4.6% on Monday . The company traded as low as $53.87 and last traded at $54.20. Approximately 691,655 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 2,346,531 shares. The stock had previously closed at $56.82.

Wall Street Analyst Weigh In

LMND has been the subject of a number of analyst reports. Wall Street Zen raised Lemonade from a "sell" rating to a "hold" rating in a report on Saturday, August 9th. Cantor Fitzgerald raised Lemonade to a "strong-buy" rating in a report on Wednesday, August 13th. Keefe, Bruyette & Woods reaffirmed an "underperform" rating and issued a $26.00 price target (up previously from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. BMO Capital Markets upped their price target on Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a report on Monday, August 18th. Finally, Morgan Stanley reaffirmed an "underweight" rating on shares of Lemonade in a report on Monday, August 18th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, Lemonade presently has a consensus rating of "Reduce" and a consensus target price of $40.43.

Lemonade Stock Performance

The company has a 50 day simple moving average of $45.90 and a 200 day simple moving average of $37.51. The company has a market capitalization of $3.91 billion, a PE ratio of -18.70 and a beta of 2.19.

Lemonade (NYSE:LMND - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.60) EPS for the quarter, topping the consensus estimate of ($0.81) by $0.21. Lemonade had a negative return on equity of 36.12% and a negative net margin of 33.96%.The company had revenue of $164.10 million during the quarter, compared to analyst estimates of $160.88 million. During the same period in the previous year, the business earned ($0.81) EPS. Lemonade's quarterly revenue was up 34.5% on a year-over-year basis. Lemonade has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities research analysts anticipate that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Activity at Lemonade

In other news, insider John Sheldon Peters sold 6,543 shares of the company's stock in a transaction that occurred on Monday, June 23rd. The stock was sold at an average price of $45.00, for a total value of $294,435.00. Following the completion of the sale, the insider directly owned 106,115 shares in the company, valued at $4,775,175. This represents a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Adina Eckstein sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $49.00, for a total value of $245,000.00. Following the completion of the sale, the chief operating officer 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. Over the last quarter, insiders have sold 18,289 shares of company stock valued at $825,982. 14.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lemonade

A number of large investors have recently made changes to their positions in LMND. Vanguard Group Inc. grew its position in shares of Lemonade by 14.9% in the first 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 in the last quarter. Two Sigma Investments LP purchased a new stake in shares of Lemonade in the fourth quarter valued at approximately $22,066,000. Voloridge Investment Management LLC purchased a new stake in shares of Lemonade in the fourth quarter valued at approximately $21,310,000. Jump Financial LLC grew its position in shares of Lemonade by 365.8% in the second quarter. Jump Financial LLC now owns 581,378 shares of the company's stock valued at $25,470,000 after purchasing an additional 456,571 shares in the last quarter. Finally, Two Sigma Advisers LP purchased a new stake in shares of Lemonade in the fourth quarter valued at approximately $15,412,000. 80.30% of the stock is currently owned by hedge funds and other institutional investors.

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.