Lemonade (NYSE:LMND) Trading Down 5.1% - Here's What Happened

Lemonade, Inc. (NYSE:LMND - Get Free Report) dropped 5.1% during mid-day trading on Thursday . The stock traded as low as $39.54 and last traded at $39.67. Approximately 1,148,169 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 2,108,943 shares. The stock had previously closed at $41.80.

Wall Street Analyst Weigh In

LMND has been the subject of several recent research reports. BMO Capital Markets upped their price target on shares of Lemonade from $15.00 to $23.00 and gave the company an "underperform" rating in a research report on Wednesday, July 2nd. Wall Street Zen upgraded shares of Lemonade from a "sell" rating to a "hold" rating in a research report on Saturday, July 5th. Morgan Stanley cut shares of Lemonade from an "equal weight" rating to an "underweight" rating and decreased their price target for the company from $35.00 to $24.00 in a research report on Tuesday, April 8th. Finally, Keefe, Bruyette & Woods restated an "underperform" rating and issued a $26.00 price target (up from $22.00) on shares of Lemonade in a research report on Tuesday, July 1st. Four investment analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $30.17.

Lemonade Stock Performance

The stock's 50 day moving average price is $37.21 and its 200 day moving average price is $34.47. The company has a market capitalization of $2.79 billion, a P/E ratio of -12.54 and a beta of 2.20.

Lemonade (NYSE:LMND - Get Free Report) last posted its quarterly earnings data on Wednesday, May 7th. The company reported ($0.86) EPS for the quarter, missing analysts' consensus estimates of ($0.84) by ($0.02). Lemonade had a negative net margin of 38.90% and a negative return on equity of 36.72%. During the same quarter in the prior year, the business earned ($0.67) earnings per share. The business's quarterly revenue was up 27.0% on a year-over-year basis. On average, analysts expect that Lemonade, Inc. will post -3.03 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Softbank Group Capital Ltd sold 387,282 shares of the stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $32.84, for a total transaction of $12,718,340.88. Following the transaction, the insider directly owned 7,111,441 shares of the company's stock, valued at $233,539,722.44. This represents a 5.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Adina Eckstein sold 5,000 shares of the stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $45.00, for a total transaction of $225,000.00. Following the transaction, the chief operating officer directly owned 189,653 shares in the company, valued at approximately $8,534,385. This represents a 2.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 2,509,545 shares of company stock valued at $78,775,964. 14.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Mandatum Life Insurance Co Ltd acquired a new position in Lemonade during the second quarter worth $202,000. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Lemonade in the second quarter valued at about $365,000. Rhumbline Advisers raised its holdings in shares of Lemonade by 2.6% in the first quarter. Rhumbline Advisers now owns 77,706 shares of the company's stock valued at $2,442,000 after purchasing an additional 2,001 shares during the last quarter. Caxton Associates LLP purchased a new stake in shares of Lemonade in the first quarter valued at about $1,455,000. Finally, Goldman Sachs Group Inc. raised its holdings in shares of Lemonade by 7.3% in the first quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company's stock valued at $19,244,000 after purchasing an additional 41,759 shares during the last quarter. 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.