Lemonade (NYSE:LMND) Shares Gap Up - Should You Buy?

Key Points

• Lemonade shares gapped up significantly, opening at $55.39 after a previous close of $52.57, and are currently trading at $57.51 with high trading volume.
• Analysts have mixed opinions on Lemonade, with a consensus rating of "Reduce" and a target price of $40.43, while one analyst has a Strong Buy rating.
• Insider activity includes notable stock sales, with COO Adina Eckstein selling 5,000 shares, indicating a 2.57% decrease in her ownership stake.

Lemonade, Inc. (NYSE:LMND - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $52.57, but opened at $55.39. Lemonade shares last traded at $57.51, with a volume of 595,507 shares.

Wall Street Analysts Forecast Growth

LMND has been the subject of several recent research reports. Piper Sandler increased their target price on shares of Lemonade from $55.00 to $60.00 and gave the stock a "neutral" rating in a research note on Wednesday. Wall Street Zen raised Lemonade from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Keefe, Bruyette & Woods reaffirmed an "underperform" rating and set a $26.00 price target (up from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. Cantor Fitzgerald raised Lemonade to a "strong-buy" rating in a report on Wednesday, August 13th. Finally, Morgan Stanley reaffirmed an "underweight" rating on shares of Lemonade in a report on Monday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, Lemonade presently has a consensus rating of "Reduce" and a consensus price target of $41.14.

Lemonade Stock Performance

The firm has a fifty day moving average price of $48.77 and a 200 day moving average price of $39.23. The firm has a market capitalization of $4.52 billion, a price-to-earnings ratio of -21.60 and a beta of 2.28.

Lemonade (NYSE:LMND - Get Free Report) last released its earnings results on Tuesday, August 5th. The company reported ($0.60) EPS for the quarter, beating 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 during the quarter, compared to the consensus estimate of $160.88 million. During the same quarter last year, the company earned ($0.81) earnings per share. Lemonade'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. Research analysts predict that Lemonade, Inc. will post -3.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Lemonade

In related news, COO Adina Eckstein sold 5,000 shares of Lemonade stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $45.00, for a total transaction of $225,000.00. Following the completion of the transaction, the chief operating officer directly owned 189,653 shares of the company's stock, valued at approximately $8,534,385. The trade was a 2.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider John Sheldon Peters sold 6,543 shares of Lemonade stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $45.00, for a total value of $294,435.00. Following the transaction, the insider directly owned 106,115 shares of the company's stock, valued at $4,775,175. This trade represents a 5.81% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 19,543 shares of company stock valued at $915,455. 14.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Lemonade

Institutional investors have recently made changes to their positions in the stock. Caxton Associates LLP acquired a new position in Lemonade in the 1st quarter valued at about $1,455,000. Nomura Holdings Inc. acquired a new position in shares of Lemonade in the first quarter valued at approximately $416,000. Dynamic Technology Lab Private Ltd acquired a new position in shares of Lemonade in the first quarter valued at approximately $638,000. GAMMA Investing LLC raised its position in shares of Lemonade by 35,901.8% in the first quarter. GAMMA Investing LLC now owns 19,801 shares of the company's stock valued at $630,000 after buying an additional 19,746 shares during the last quarter. Finally, Halter Ferguson Financial Inc. raised its position in shares of Lemonade by 62.8% in the first quarter. Halter Ferguson Financial Inc. now owns 476,764 shares of the company's stock valued at $14,985,000 after buying an additional 183,974 shares during the last quarter. 80.30% of the stock is owned by institutional investors and hedge funds.

Lemonade Company Profile

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.