Lemonade (NYSE:LMND) Shares Down 5.1% - Here's What Happened

Key Points

• Lemonade, Inc. (NYSE:LMND) shares fell by 5.1% to $50.72 on Friday, with trading volume significantly down at approximately 481,489 shares compared to an average of 2,326,038 shares.
• Analyst ratings for Lemonade vary, with one analyst giving it a Strong Buy rating, while others have assigned Sell or Underperform ratings, influencing its consensus rating of "Reduce" and an average target price of $48.00.
• The company's recent quarterly earnings showed a revenue increase of 34.5% year-over-year, reporting $164.10 million against a consensus estimate of $160.88 million, and an EPS of ($0.60), exceeding analyst expectations.

Lemonade, Inc. (NYSE:LMND - Get Free Report) dropped 5.1% on Friday . The company traded as low as $50.70 and last traded at $50.72. Approximately 481,489 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 2,326,038 shares. The stock had previously closed at $53.47.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on LMND. BMO Capital Markets boosted their target price on shares of Lemonade from $23.00 to $42.00 and gave the company an "underperform" rating in a research note on Monday, August 18th. Wall Street Zen raised shares of Lemonade from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Cantor Fitzgerald raised shares of Lemonade to a "strong-buy" rating in a research report on Wednesday, August 13th. Keefe, Bruyette & Woods reiterated an "underperform" rating and issued a $26.00 price target (up from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. Finally, Morgan Stanley boosted their price target on Lemonade from $43.00 to $45.00 and gave the company an "underweight" rating in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has issued a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $48.00.

Lemonade Stock Performance

The firm has a market capitalization of $3.61 billion, a price-to-earnings ratio of -17.29 and a beta of 2.24. The business has a fifty day moving average price of $53.37 and a 200 day moving average price of $41.28.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported ($0.60) EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $160.88 million. During the same period last year, the business posted ($0.81) EPS. The company's quarterly revenue was up 34.5% compared to the same quarter last year. Lemonade has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, analysts expect that Lemonade, Inc. will post -3.03 earnings per share for the current year.

Insider Activity at Lemonade

In related news, COO Adina Eckstein sold 5,000 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $49.00, for a total transaction of $245,000.00. Following the completion of the sale, the chief operating officer directly owned 189,653 shares of the company's stock, valued at approximately $9,292,997. This represents a 2.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider John Sheldon Peters sold 2,718 shares of Lemonade stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $50.34, for a total transaction of $136,824.12. Following the sale, the insider owned 102,397 shares in the company, valued at $5,154,664.98. This represents a 2.59% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 8,000 shares of company stock valued at $396,020. 14.70% of the stock is owned by insiders.

Hedge Funds Weigh In On Lemonade

Several large investors have recently modified their holdings of the stock. Toth Financial Advisory Corp lifted its holdings in Lemonade by 10,600.0% during the 3rd quarter. Toth Financial Advisory Corp now owns 10,700 shares of the company's stock worth $573,000 after buying an additional 10,600 shares during the last quarter. Fermata Advisors LLC bought a new position in Lemonade during the third quarter worth $203,000. Halter Ferguson Financial Inc. lifted its position in shares of Lemonade by 101.3% in the 3rd quarter. Halter Ferguson Financial Inc. now owns 575,906 shares of the company's stock worth $30,828,000 after buying an additional 289,803 shares during the last quarter. Wedmont Private Capital bought a new position in shares of Lemonade in the 3rd quarter worth about $222,000. Finally, Corient Private Wealth LLC bought a new position in shares of Lemonade in the 2nd quarter worth about $313,000. Institutional investors own 80.30% of the company's stock.

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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