Lemonade (NYSE:LMND) Shares Gap Up - Still a 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) gapped up prior to trading 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 changing hands.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on LMND shares. Keefe, Bruyette & Woods restated an "underperform" rating and issued a $26.00 price objective (up from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. Piper Sandler restated a "neutral" rating and issued a $55.00 price objective on shares of Lemonade in a report on Thursday, August 14th. Morgan Stanley reaffirmed an "underweight" rating on shares of Lemonade in a research report on Monday, August 18th. Cantor Fitzgerald raised shares of Lemonade to a "strong-buy" rating in a research report on Wednesday, August 13th. Finally, Wall Street Zen raised shares of Lemonade from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $40.43.

Lemonade Stock Performance

The company has a market cap of $4.12 billion, a price-to-earnings ratio of -19.67 and a beta of 2.27. The stock's fifty day moving average is $47.55 and its two-hundred day moving average is $38.69.

Lemonade (NYSE:LMND - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported ($0.60) earnings per share for the quarter, topping analysts' consensus estimates of ($0.81) by $0.21. The company had revenue of $164.10 million for the quarter, compared to analyst estimates of $160.88 million. Lemonade had a negative net margin of 33.96% and a negative return on equity of 36.12%. The firm's revenue was up 34.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.81) EPS. Lemonade has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities research analysts expect that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Activity

In other Lemonade news, COO Adina Eckstein sold 5,000 shares of the stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $49.00, for a total value of $245,000.00. Following the completion of the sale, the chief operating officer owned 189,653 shares in the company, valued at approximately $9,292,997. This trade represents a 2.57% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider John Sheldon Peters sold 2,718 shares of the stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $50.34, for a total transaction of $136,824.12. Following the completion of the sale, the insider owned 102,397 shares of the company's stock, valued at approximately $5,154,664.98. This trade represents a 2.59% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 19,543 shares of company stock valued at $915,455. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Lemonade

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Ameriprise Financial Inc. increased its stake in shares of Lemonade by 697.4% during the 4th quarter. Ameriprise Financial Inc. now owns 98,697 shares of the company's stock worth $3,620,000 after purchasing an additional 86,320 shares during the last quarter. Deutsche Bank AG increased its stake in shares of Lemonade by 492.6% during the 4th quarter. Deutsche Bank AG now owns 182,081 shares of the company's stock worth $6,679,000 after purchasing an additional 151,357 shares during the last quarter. Gotham Asset Management LLC purchased a new stake in shares of Lemonade during the 4th quarter worth approximately $267,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Lemonade by 5.2% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 83,767 shares of the company's stock worth $3,073,000 after purchasing an additional 4,109 shares during the last quarter. Finally, Millennium Management LLC increased its stake in shares of Lemonade by 67.4% during the 4th quarter. Millennium Management LLC now owns 92,890 shares of the company's stock worth $3,407,000 after purchasing an additional 37,398 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

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.

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