Lemonade (NYSE:LMND) Stock Price Down 6.5% - Here's Why

Key Points

• Lemonade, Inc. (NYSE:LMND) experienced a share price drop of 6.5% mid-day on Wednesday, trading as low as $54.23 before closing at $53.79.
• Recent analyst ratings are mixed; while Cantor Fitzgerald upgraded Lemonade to a "strong-buy," other firms like Keefe, Bruyette & Woods and Morgan Stanley issued lower ratings, with a consensus rating of "Reduce" and an average price target of $41.14.
• The company reported a negative net margin of 33.96% despite year-over-year revenue growth of 34.5%, and it recently set its FY 2025 earnings projections.

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s share price was down 6.5% during mid-day trading on Wednesday . The company traded as low as $54.23 and last traded at $53.79. Approximately 2,124,562 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 2,335,577 shares. The stock had previously closed at $57.52.

Wall Street Analysts Forecast Growth

LMND has been the topic of several recent research reports. Cantor Fitzgerald raised shares of Lemonade to a "strong-buy" rating in a research note on Wednesday, August 13th. Keefe, Bruyette & Woods reaffirmed an "underperform" rating and issued a $26.00 target price (up from $22.00) on shares of Lemonade in a research report on Tuesday, July 1st. Morgan Stanley reissued an "underweight" rating on shares of Lemonade in a research report on Monday, August 18th. BMO Capital Markets raised their target price on shares of Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a research note on Monday, August 18th. Finally, Piper Sandler raised their price objective on shares of Lemonade from $55.00 to $60.00 and gave the company a "neutral" rating in a research note on Wednesday, September 17th. One investment 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 given a Sell rating to the stock. According to MarketBeat, Lemonade currently has a consensus rating of "Reduce" and an average price target of $41.14.

Lemonade Trading Down 6.4%

The stock's 50-day moving average is $49.99 and its 200-day moving average is $39.74. The stock has a market cap of $3.98 billion, a P/E ratio of -19.10 and a beta of 2.28.

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

Insider Buying and Selling

In other news, COO Adina Eckstein sold 5,000 shares of the stock in a transaction that occurred on 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 directly owned 189,653 shares of the company's stock, valued at $9,292,997. This represents a 2.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider John Sheldon Peters sold 2,718 shares of the firm's stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $50.34, for a total transaction of $136,824.12. Following the transaction, the insider directly owned 102,397 shares in the company, valued at approximately $5,154,664.98. The trade was a 2.59% decrease in their position. The disclosure for this sale can be found here. Insiders sold 8,000 shares of company stock valued at $396,020 over the last three months. 12.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in shares of Lemonade by 14.9% during the 1st quarter. Vanguard Group Inc. now owns 6,138,444 shares of the company's stock worth $192,931,000 after buying an additional 794,952 shares during the period. Jump Financial LLC grew its position in shares of Lemonade by 365.8% during the 2nd quarter. Jump Financial LLC now owns 581,378 shares of the company's stock worth $25,470,000 after buying an additional 456,571 shares during the period. Analyst IMS Investment Management Services Ltd. acquired a new position in shares of Lemonade during the 1st quarter worth about $9,944,000. Millennium Management LLC grew its position in shares of Lemonade by 255.2% during the 1st quarter. Millennium Management LLC now owns 329,934 shares of the company's stock worth $10,370,000 after buying an additional 237,044 shares during the period. Finally, Bank of America Corp DE grew its position in shares of Lemonade by 28.1% during the 2nd quarter. Bank of America Corp DE now owns 993,669 shares of the company's stock worth $43,533,000 after buying an additional 217,913 shares during the period. 80.30% of the stock is owned by institutional investors.

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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