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

Lemonade, Inc. (NYSE:LMND - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $42.13, but opened at $40.29. Lemonade shares last traded at $40.73, with a volume of 426,953 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on LMND shares. Morgan Stanley downgraded shares of Lemonade from an "equal weight" rating to an "underweight" rating and decreased their price target for the company from $35.00 to $24.00 in a research note on Tuesday, April 8th. Keefe, Bruyette & Woods decreased their target price on shares of Lemonade from $25.00 to $22.00 and set an "underperform" rating on the stock in a research report on Tuesday, April 22nd. Finally, Piper Sandler lowered their price target on shares of Lemonade from $44.00 to $34.00 and set a "neutral" rating for the company in a report on Wednesday, February 26th. Four equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, Lemonade presently has an average rating of "Hold" and an average target price of $28.17.

Lemonade Stock Up 3.8%

The company has a market capitalization of $3.08 billion, a PE ratio of -13.82 and a beta of 2.14. The firm's 50 day simple moving average is $31.57 and its 200 day simple moving average is $34.53.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The company reported ($0.86) EPS for the quarter, missing analysts' consensus estimates of ($0.84) by ($0.02). Lemonade had a negative return on equity of 32.85% and a negative net margin of 43.51%. During the same quarter in the previous year, the firm earned ($0.67) EPS. The company's revenue was up 27.0% on a year-over-year basis. As a group, sell-side analysts predict that Lemonade, Inc. will post -3.03 EPS for the current fiscal year.

Insider Transactions at Lemonade

In other news, major shareholder Softbank Group Capital Ltd sold 42,160 shares of Lemonade stock in a transaction that occurred on Wednesday, March 26th. The shares were sold at an average price of $37.22, for a total transaction of $1,569,195.20. Following the completion of the sale, the insider now owns 10,452,476 shares of the company's stock, valued at approximately $389,041,156.72. The trade was a 0.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider John Sheldon Peters sold 1,494 shares of the business's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $35.25, for a total value of $52,663.50. Following the completion of the sale, the insider now owns 106,115 shares of the company's stock, valued at $3,740,553.75. The trade was a 1.39% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,744,737 shares of company stock worth $87,411,365. 14.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Lemonade

A number of institutional investors and hedge funds have recently bought and sold shares of LMND. SVB Wealth LLC bought a new position in shares of Lemonade during the 1st quarter worth $26,000. Quarry LP increased its holdings in Lemonade by 300.4% during the fourth quarter. Quarry LP now owns 933 shares of the company's stock valued at $34,000 after buying an additional 700 shares during the period. NewEdge Advisors LLC bought a new position in Lemonade in the first quarter worth approximately $35,000. Russell Investments Group Ltd. lifted its holdings in Lemonade by 318.8% during the fourth quarter. Russell Investments Group Ltd. now owns 1,139 shares of the company's stock worth $42,000 after buying an additional 867 shares during the period. Finally, Hollencrest Capital Management bought a new stake in Lemonade during the 1st quarter valued at $41,000. 80.30% of the stock is owned by institutional investors.

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.