Lemonade (NYSE:LMND) Shares Down 7.4% After Insider Selling

Key Points

• Shares fell about 7% intraday to roughly $86.36 after insider selling: CEO Daniel Schreiber sold 126,625 shares for about $12.0M and John Sheldon Peters sold 9,000 shares for about $810k, while trading volume was ~1.42M shares (down ~37% from average).
• Analysts are mixed (4 Buy, 2 Hold, 3 Sell) with an average target of $71.50—below the current price—and Lemonade remains unprofitable (negative EPS and a -26.4% net margin) despite ~42% year-over-year revenue growth.

Lemonade, Inc. (NYSE:LMND - Get Free Report) was down 7.4% during mid-day trading on Monday following insider selling activity. The stock traded as low as $87.41 and last traded at $86.36. Approximately 1,418,681 shares were traded during trading, a decline of 37% from the average daily volume of 2,263,787 shares. The stock had previously closed at $93.25.

Specifically, insider John Sheldon Peters sold 9,000 shares of the business's stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $90.00, for a total transaction of $810,000.00. Following the completion of the sale, the insider directly owned 70,228 shares in the company, valued at approximately $6,320,520. The trade was a 11.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Daniel A. Schreiber sold 126,625 shares of the stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $94.74, for a total value of $11,996,452.50. Following the completion of the transaction, the chief executive officer directly owned 1,523,534 shares in the company, valued at approximately $144,339,611.16. This represents a 7.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Analysts Set New Price Targets

LMND has been the subject of several research reports. Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a research report on Thursday. Piper Sandler dropped their price target on shares of Lemonade from $60.00 to $55.00 and set a "neutral" rating for the company in a research note on Friday, October 10th. Citigroup restated an "outperform" rating on shares of Lemonade in a research report on Friday, January 16th. Cantor Fitzgerald boosted their price objective on Lemonade from $85.00 to $92.00 and gave the company an "overweight" rating in a report on Wednesday, January 14th. Finally, Morgan Stanley set a $85.00 target price on Lemonade and gave the stock an "equal weight" rating in a research note on Tuesday, December 16th. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $71.50.

Lemonade Stock Down 7.7%

The business's 50-day moving average is $77.82 and its 200-day moving average is $61.72. The company has a market capitalization of $6.43 billion, a price-to-earnings ratio of -36.16 and a beta of 1.98.

Lemonade (NYSE:LMND - Get Free Report) last announced its quarterly earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share for the quarter, beating the consensus estimate of ($0.72) by $0.21. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The firm had revenue of $194.50 million for the quarter, compared to analysts' expectations of $185.06 million. During the same quarter in the previous year, the company posted ($0.95) EPS. The company's revenue was up 42.4% compared to the same quarter last year. As a group, analysts expect that Lemonade, Inc. will post -3.03 EPS for the current year.

Institutional Investors Weigh In On Lemonade

Hedge funds have recently modified their holdings of the company. AQR Capital Management LLC boosted its stake in shares of Lemonade by 107.3% during the 1st quarter. AQR Capital Management LLC now owns 30,490 shares of the company's stock valued at $958,000 after buying an additional 15,779 shares during the last quarter. Millennium Management LLC grew its position in shares of Lemonade by 255.2% in the 1st quarter. Millennium Management LLC now owns 329,934 shares of the company's stock worth $10,370,000 after acquiring an additional 237,044 shares in the last quarter. NewEdge Advisors LLC bought a new stake in Lemonade during the first quarter valued at $35,000. Goldman Sachs Group Inc. raised its stake in Lemonade by 7.3% during the first quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company's stock worth $19,244,000 after acquiring an additional 41,759 shares during the period. Finally, Wealth Enhancement Advisory Services LLC acquired a new position in Lemonade during the 2nd quarter valued at approximately $365,000. 80.30% of the stock is owned by institutional investors and hedge funds.

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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