Lemonade (NYSE:LMND) Shares Down 6.8% - Time to Sell?

Key Points

• Lemonade shares fell 6.8% in Wednesday trading, closing near $63.92 after dipping as low as $64.04. Volume was well below average, with about 369,612 shares traded versus a typical 2.0 million.
• Analyst sentiment is mixed: Lemonade has a Hold consensus rating with an average target price of $66.78. Recent calls included upgrades and reiterated targets around $75, but Weiss Ratings maintained a sell (d-) rating.
• The company’s latest earnings beat expectations, reporting -$0.47 EPS versus forecasts for -$0.58 and revenue of $258 million, up 70.6% year over year. Despite improving results, Lemonade still posted negative margins and the stock remains volatile.

Lemonade, Inc. (NYSE:LMND - Get Free Report) traded down 6.8% during mid-day trading on Wednesday . The company traded as low as $64.04 and last traded at $63.92. 369,612 shares were traded during trading, a decline of 82% from the average session volume of 2,016,360 shares. The stock had previously closed at $68.62.

Analyst Upgrades and Downgrades

LMND has been the topic of a number of research analyst reports. Cantor Fitzgerald reissued an "overweight" rating on shares of Lemonade in a research note on Tuesday, May 26th. UBS Group set a $75.00 price objective on Lemonade in a report on Thursday, May 21st. Piper Sandler increased their price objective on Lemonade from $62.00 to $75.00 and gave the company a "neutral" rating in a research report on Wednesday, July 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of Lemonade in a report on Friday. Finally, Morgan Stanley restated an "equal weight" rating and issued a $75.00 target price on shares of Lemonade in a research report on Wednesday, July 8th. Four investment analysts have rated the stock with a Buy rating, three have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, Lemonade has an average rating of "Hold" and a consensus target price of $66.78.

Lemonade Stock Down 6.5%

The stock has a market cap of $4.93 billion, a P/E ratio of -34.33 and a beta of 1.79. The company has a 50-day simple moving average of $60.78 and a two-hundred day simple moving average of $64.64.

Lemonade (NYSE:LMND - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, beating analysts' consensus estimates of ($0.58) by $0.11. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The company had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.51 million. During the same period in the prior year, the business posted ($0.86) EPS. The firm's revenue was up 70.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Lemonade, Inc. will post -1.7 earnings per share for the current fiscal year.

Insider Transactions at Lemonade

In related news, insider John Sheldon Peters sold 3,444 shares of the business's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $79.00, for a total transaction of $272,076.00. Following the transaction, the insider owned 77,942 shares in the company, valued at $6,157,418. The trade was a 4.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Maya Prosor sold 1,220 shares of the company's stock in a transaction that occurred 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 transaction, the insider directly owned 187,573 shares of the company's stock, valued at $9,973,256.41. The trade was a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 10,007 shares of company stock valued at $620,201. 12.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lemonade

Large investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd raised its holdings in shares of Lemonade by 8,080.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company's stock valued at $29,000 after acquiring an additional 404 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in Lemonade during the 4th quarter valued at $33,000. Torren Management LLC purchased a new position in Lemonade during the 4th quarter valued at $35,000. NewEdge Advisors LLC bought a new position in Lemonade in the 1st quarter worth $35,000. Finally, Strive Financial Group LLC bought a new position in Lemonade in the 4th quarter worth $38,000. 80.30% of the stock is currently owned by institutional investors.

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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