Lemonade (NYSE:LMND) Shares Gap Up - Still a Buy?

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s share price gapped up before the market opened on Wednesday . The stock had previously closed at $33.12, but opened at $34.00. Lemonade shares last traded at $32.72, with a volume of 409,639 shares.

Wall Street Analysts Forecast Growth

LMND has been the topic of several recent analyst reports. Piper Sandler decreased their target price on shares of Lemonade from $44.00 to $34.00 and set a "neutral" rating on the stock in a report on Wednesday, February 26th. Keefe, Bruyette & Woods cut their price target on shares of Lemonade from $25.00 to $22.00 and set an "underperform" rating for the company in a report on Tuesday, April 22nd. Finally, Morgan Stanley cut shares of Lemonade from an "equal weight" rating to an "underweight" rating and decreased their price objective for the company from $35.00 to $24.00 in a research note on Tuesday, April 8th. Four research analysts have rated the stock with a sell rating, one has given a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $28.17.

Lemonade Price Performance

The stock has a market cap of $2.38 billion, a P/E ratio of -10.72 and a beta of 2.13. The stock has a 50-day simple moving average of $30.10 and a 200-day simple moving average of $34.95.

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

Insider Activity

In other news, insider John Sheldon Peters sold 1,899 shares of the business's stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $33.79, for a total transaction of $64,167.21. Following the sale, the insider now directly owns 87,609 shares in the company, valued at approximately $2,960,308.11. The trade was a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Softbank Group Capital Ltd sold 387,282 shares of the business's stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $32.84, for a total value of $12,718,340.88. Following the sale, the insider now owns 7,111,441 shares in the company, valued at approximately $233,539,722.44. This trade represents a 5.16% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,744,890 shares of company stock worth $87,413,986. Insiders own 14.70% of the company's stock.

Institutional Trading of Lemonade

Hedge funds and other institutional investors have recently made changes to their positions in the company. Strategic Financial Concepts LLC bought a new stake in shares of Lemonade during the fourth quarter worth about $2,712,000. The Manufacturers Life Insurance Company boosted its holdings in Lemonade by 7.7% in the fourth quarter. The Manufacturers Life Insurance Company now owns 31,000 shares of the company's stock valued at $1,137,000 after acquiring an additional 2,209 shares during the last quarter. Watershed Private Wealth LLC bought a new stake in Lemonade in the fourth quarter valued at approximately $286,000. Woodward Diversified Capital LLC bought a new stake in Lemonade in the fourth quarter valued at approximately $381,000. Finally, Nisa Investment Advisors LLC boosted its holdings in Lemonade by 4.9% in the fourth quarter. Nisa Investment Advisors LLC now owns 10,640 shares of the company's stock valued at $390,000 after acquiring an additional 500 shares during the last quarter. 80.30% of the stock is currently 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.

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