Lemonade (NYSE:LMND) Stock Price Down 6.8% - Here's What Happened

Key Points

• Stock down 6.8% — Lemonade shares fell to about $57.71 on Tuesday, with 517,987 shares traded, a roughly 79% drop from its average session volume.
• Q4 results showed EPS of ($0.29), beating estimates of ($0.41) and revenue up 53.3% year-over-year, but the company remains unprofitable with negative net margin and return on equity.
• Analysts are mixed with an average rating of “Hold” and a consensus target of $68.75, while insiders sold roughly 150,300 shares (~$14M) over the last three months.

Lemonade, Inc. (NYSE:LMND - Get Free Report) shares traded down 6.8% on Tuesday . The company traded as low as $58.10 and last traded at $57.7050. 517,987 shares changed hands during trading, a decline of 79% from the average session volume of 2,499,994 shares. The stock had previously closed at $61.94.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Piper Sandler set a $65.00 price target on Lemonade in a research note on Thursday, February 19th. Morgan Stanley raised Lemonade from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $80.00 to $85.00 in a research note on Tuesday, March 17th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research note on Thursday, January 22nd. Citigroup reaffirmed an "outperform" rating on shares of Lemonade in a research note on Friday, January 16th. Finally, Keefe, Bruyette & Woods raised their price target on Lemonade from $40.00 to $44.00 and gave the stock an "underperform" rating in a research note on Tuesday, February 24th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $68.75.

Lemonade Stock Performance

The stock has a 50 day moving average of $64.07 and a two-hundred day moving average of $67.46. The firm has a market capitalization of $4.45 billion, a P/E ratio of -25.81 and a beta of 2.04.

Lemonade (NYSE:LMND - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The company reported ($0.29) earnings per share for the quarter, beating analysts' consensus estimates of ($0.41) by $0.12. Lemonade had a negative return on equity of 31.19% and a negative net margin of 22.43%.During the same period in the prior year, the business posted ($0.42) EPS. Lemonade's revenue for the quarter was up 53.3% compared to the same quarter last year. Sell-side analysts predict that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Buying and Selling

In related news, insider John Sheldon Peters sold 9,000 shares of the firm's stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $90.00, for a total value of $810,000.00. Following the transaction, the insider directly owned 70,228 shares of the company's stock, valued at approximately $6,320,520. This trade represents a 11.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Daniel A. Schreiber sold 126,625 shares of the firm's stock in a transaction that occurred on Thursday, January 22nd. The shares were sold at an average price of $94.74, for a total value of $11,996,452.50. Following the completion of the transaction, the chief executive officer directly owned 1,523,534 shares in the company, valued at $144,339,611.16. The trade was a 7.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 150,300 shares of company stock worth $13,996,026 over the last three months. 14.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in LMND. TD Waterhouse Canada Inc. increased its position in Lemonade by 3.4% in the 4th quarter. TD Waterhouse Canada Inc. now owns 3,671 shares of the company's stock worth $261,000 after buying an additional 121 shares during the period. Watershed Private Wealth LLC increased its position in Lemonade by 1.7% in the 4th quarter. Watershed Private Wealth LLC now owns 8,310 shares of the company's stock worth $592,000 after buying an additional 140 shares during the period. AQR Capital Management LLC increased its position in Lemonade by 0.7% in the 4th quarter. AQR Capital Management LLC now owns 21,569 shares of the company's stock worth $1,535,000 after buying an additional 159 shares during the period. Titleist Asset Management LLC increased its position in Lemonade by 4.1% in the 3rd quarter. Titleist Asset Management LLC now owns 4,832 shares of the company's stock worth $259,000 after buying an additional 189 shares during the period. Finally, Wealth Enhancement Advisory Services LLC raised its stake in Lemonade by 2.7% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 8,431 shares of the company's stock valued at $600,000 after purchasing an additional 219 shares during the last quarter. 80.30% of the stock is owned by institutional investors.

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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