Lemonade (NYSE:LMND) Stock Price Expected to Rise, Keefe, Bruyette & Woods Analyst Says

Key Points

• Keefe, Bruyette & Woods raised Lemonade’s price target from $44 to $48, but kept an underperform rating. The new target still implies roughly 32% downside from the current share price.
• Analyst sentiment is mixed: other firms such as Cantor Fitzgerald and UBS have more bullish targets, while the overall consensus rating remains Hold with an average price target of $65.33.
• Lemonade reported stronger-than-expected quarterly results, posting an EPS loss of $0.47 versus estimates for a $0.58 loss and revenue of $258 million, up 70.6% year over year. The stock was also down sharply on the day reported, despite the earnings beat.

Lemonade (NYSE:LMND - Get Free Report) had its price target lifted by research analysts at Keefe, Bruyette & Woods from $44.00 to $48.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an "underperform" rating on the stock. Keefe, Bruyette & Woods' price objective would suggest a potential downside of 32.42% from the company's current price.

A number of other equities research analysts have also recently commented on LMND. Cantor Fitzgerald restated an "overweight" rating on shares of Lemonade in a research report on Tuesday, May 26th. UBS Group set a $75.00 price objective on Lemonade in a report on Thursday, May 21st. Morgan Stanley restated an "equal weight" rating and issued a $75.00 price objective on shares of Lemonade in a research report on Wednesday. Piper Sandler dropped their price target on shares of Lemonade from $65.00 to $62.00 and set a "neutral" rating on the stock in a research note on Thursday, April 30th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a report on Tuesday, April 21st. Four investment 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's stock. According to MarketBeat.com, Lemonade presently has a consensus rating of "Hold" and an average price target of $65.33.

Lemonade Stock Down 8.5%

Shares of NYSE LMND traded down $6.56 during midday trading on Wednesday, reaching $71.03. 644,793 shares of the stock were exchanged, compared to its average volume of 2,083,111. The firm has a market cap of $5.46 billion, a price-to-earnings ratio of -37.67 and a beta of 1.79. The firm has a 50-day simple moving average of $58.54 and a two-hundred day simple moving average of $65.26. Lemonade has a twelve month low of $35.70 and a twelve month high of $99.90.

Lemonade (NYSE:LMND - Get Free Report) last announced its quarterly earnings results on Tuesday, April 28th. The company reported ($0.47) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $258.00 million for the quarter, compared to the consensus estimate of $251.51 million. During the same period in the prior year, the firm posted ($0.86) earnings per share. The firm's quarterly revenue was up 70.6% compared to the same quarter last year. Research analysts expect that Lemonade will post -1.71 EPS for the current fiscal year.

Insider Buying and Selling

In other Lemonade news, insider John Sheldon Peters sold 3,608 shares of the company'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 completion of the sale, the insider directly owned 81,386 shares in the company, valued at $4,308,574.84. This represents a 4.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the completion of the sale, the insider directly owned 187,573 shares of the company's stock, valued at $9,973,256.41. This trade represents a 0.65% decrease in their ownership of the stock. 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 6,563 shares of company stock valued at $348,125 over the last 90 days. Company insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Lemonade

Several hedge funds and other institutional investors have recently bought and sold shares of LMND. Vanguard Group Inc. grew its stake in shares of 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. Price T Rowe Associates Inc. MD raised 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 valued at $105,644,000 after buying an additional 965,321 shares during the period. Geode Capital Management LLC lifted its holdings in Lemonade by 4.9% in the fourth quarter. Geode Capital Management LLC now owns 1,438,358 shares of the company's stock valued at $102,400,000 after acquiring an additional 67,562 shares during the last quarter. Bank of America Corp DE grew its position in Lemonade by 28.1% in the second quarter. Bank of America Corp DE now owns 993,669 shares of the company's stock worth $43,533,000 after acquiring an additional 217,913 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in Lemonade by 50.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 866,476 shares of the company's stock worth $61,676,000 after acquiring an additional 291,122 shares during the period. 80.30% of the stock is currently owned by institutional investors and hedge funds.

Lemonade Company Profile

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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