Lemonade (NYSE:LMND) Shares Up 11.4% - Here's Why

Key Points

• Lemonade shares jumped 11.4% on Wednesday, trading as high as $60.14 after closing at $53.58 the prior day. Trading volume was well below average, with about 519,374 shares changing hands.
• The rally came after a solid quarterly report: Lemonade posted EPS of -$0.47, beating expectations of -$0.58, and revenue of $258 million, above estimates and up 70.6% year over year.
• Despite the stock surge, analysts remain mixed: the consensus rating is Hold with a price target of $64.89, while recent insider sales were disclosed as routine transactions tied to tax withholding obligations.

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s stock price shot up 11.4% on Wednesday . The company traded as high as $60.14 and last traded at $59.6950. 519,374 shares changed hands during trading, a decline of 76% from the average session volume of 2,156,268 shares. The stock had previously closed at $53.58.

Analyst Ratings Changes

A number of research firms recently weighed in on LMND. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Lemonade in a research report on Tuesday, May 26th. Citizens Jmp lowered their price objective on shares of Lemonade from $85.00 to $80.00 and set a "market outperform" rating for the company in a research report on Thursday, April 30th. Morgan Stanley lowered their price objective on shares of Lemonade from $80.00 to $75.00 and set an "overweight" rating for the company in a research report on Thursday, May 21st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research report on Tuesday, April 21st. Finally, Piper Sandler lowered their price objective on shares of Lemonade from $65.00 to $62.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $64.89.

Lemonade Stock Performance

The company has a market cap of $4.34 billion, a PE ratio of -30.29 and a beta of 1.83. The company's 50-day simple moving average is $58.62 and its 200 day simple moving average is $67.19.

Lemonade (NYSE:LMND - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, beating the consensus estimate of ($0.58) by $0.11. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The company had revenue of $258.00 million during the quarter, compared to analysts' expectations of $251.51 million. During the same quarter last year, the company posted ($0.86) EPS. The firm's revenue was up 70.6% compared to the same quarter last year. Analysts forecast that Lemonade, Inc. will post -1.69 EPS for the current year.

Insider Activity at Lemonade

In other Lemonade news, insider John Sheldon Peters sold 3,608 shares of the firm's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $52.94, for a total value of $191,007.52. Following the completion of the transaction, the insider owned 81,386 shares of the company's stock, valued at $4,308,574.84. This trade represents a 4.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Maya Prosor sold 1,220 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total transaction of $64,867.40. Following the completion of the transaction, the insider directly owned 187,573 shares of the company's stock, valued at $9,973,256.41. This represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 6,563 shares of company stock valued at $348,125 in the last three months. 12.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Lemonade

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Lemonade by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 6,305,453 shares of the company's stock valued at $448,822,000 after buying an additional 26,312 shares during the period. JPMorgan Chase & Co. lifted its position in shares of Lemonade by 30.8% during the 3rd quarter. JPMorgan Chase & Co. now owns 3,506,171 shares of the company's stock worth $187,685,000 after purchasing an additional 825,522 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Lemonade by 186.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,484,175 shares of the company's stock worth $105,644,000 after purchasing an additional 965,321 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Lemonade by 4.9% during the 4th quarter. Geode Capital Management LLC now owns 1,438,358 shares of the company's stock worth $102,400,000 after purchasing an additional 67,562 shares during the last quarter. Finally, BIT Capital GmbH lifted its position in shares of Lemonade by 69.3% during the 3rd quarter. BIT Capital GmbH now owns 1,254,345 shares of the company's stock worth $67,145,000 after purchasing an additional 513,424 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

About Lemonade

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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