Lemonade (NYSE:LMND) Stock Price Down 9.2% - Time to Sell?

Key Points

• Lemonade shares fell 9.2% in mid-day trading, sliding to around $70.48 after opening weakness and lighter-than-average volume.
• Analysts remain cautious overall, with several firms cutting price targets; MarketBeat shows a consensus rating of “Hold” and an average price target of $65.33.
• Despite the selloff, recent results were better than expected: Lemonade beat quarterly EPS and revenue estimates, with revenue up 70.6% year over year, though the company still posted a loss and negative margins.

Shares of Lemonade, Inc. (NYSE:LMND - Get Free Report) traded down 9.2% during mid-day trading on Wednesday . The company traded as low as $70.98 and last traded at $70.48. Approximately 300,477 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 2,079,488 shares. The stock had previously closed at $77.59.

Analysts Set New Price Targets

LMND has been the subject of several research analyst reports. Truist Financial lowered their price objective on shares of Lemonade from $98.00 to $70.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a research report on Tuesday, April 21st. Piper Sandler reduced their price target on Lemonade from $65.00 to $62.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Citizens Jmp decreased their price objective on Lemonade from $85.00 to $80.00 and set a "market outperform" rating for the company in a report on Thursday, April 30th. Finally, Morgan Stanley reissued an "equal weight" rating and set a $75.00 price objective on shares of Lemonade in a research report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $65.33.

Lemonade Price Performance

The stock's 50 day simple moving average is $58.54 and its two-hundred day simple moving average is $65.26. The firm has a market cap of $5.36 billion, a P/E ratio of -37.21 and a beta of 1.79.

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, topping analysts' consensus estimates of ($0.58) by $0.11. The firm had revenue of $258.00 million for the quarter, compared to analysts' expectations of $251.51 million. Lemonade had a negative return on equity of 26.52% and a negative net margin of 16.44%.The business's revenue for the quarter was up 70.6% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.86) EPS. Equities research analysts anticipate that Lemonade, Inc. will post -1.71 earnings per share for the current year.

Insiders Place Their Bets

In other Lemonade news, insider John Sheldon Peters sold 3,608 shares of the business's stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $52.94, for a total value of $191,007.52. Following the sale, the insider directly owned 81,386 shares of the company's stock, valued at approximately $4,308,574.84. The trade was a 4.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through 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 on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total value of $64,867.40. Following the transaction, the insider owned 187,573 shares of the company's stock, valued at $9,973,256.41. The trade was a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 6,563 shares of company stock valued at $348,125 in the last quarter. 12.50% of the stock is owned by company insiders.

Institutional Trading of Lemonade

Institutional investors and hedge funds have recently bought and sold shares of the company. TD Waterhouse Canada Inc. lifted its stake in shares of Lemonade by 3.4% in the fourth quarter. TD Waterhouse Canada Inc. now owns 3,671 shares of the company's stock worth $261,000 after buying an additional 121 shares in the last quarter. Watershed Private Wealth LLC increased its position in shares of Lemonade by 1.7% during the fourth quarter. Watershed Private Wealth LLC now owns 8,310 shares of the company's stock valued at $592,000 after acquiring an additional 140 shares in the last quarter. AQR Capital Management LLC raised its holdings 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 acquiring an additional 159 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in Lemonade by 2.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 8,431 shares of the company's stock worth $600,000 after acquiring an additional 219 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in Lemonade by 7.2% in the 4th quarter. GAMMA Investing LLC now owns 3,529 shares of the company's stock valued at $251,000 after acquiring an additional 236 shares in the last quarter. 80.30% of the stock is currently 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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