Lemonade (NYSE:LMND) Trading Down 6.2% - Here's What Happened

Key Points

• LMND fell 6.2% to $81.35 on Monday, trading as low as $80.50 on 934,239 shares — about 58% below its average session volume.
• Analysts are mixed with a consensus "Hold" and a $71.50 price target, which is below the current share price; four analysts rate Buy, two Hold and three Sell.
• The business remains unprofitable despite strong growth, reporting a 42.4% year-over-year revenue increase and a quarter-beating EPS of ($0.51), while analysts forecast -3.03 EPS for the year; insiders have sold roughly 306,350 shares (~$25.9M) in the last 90 days.

Lemonade, Inc. (NYSE:LMND - Get Free Report) fell 6.2% during trading on Monday . The company traded as low as $80.50 and last traded at $81.35. 934,239 shares were traded during mid-day trading, a decline of 58% from the average session volume of 2,249,167 shares. The stock had previously closed at $86.73.

Analyst Upgrades and Downgrades

LMND has been the topic of several research reports. Cantor Fitzgerald upped their price target on shares of Lemonade from $85.00 to $92.00 and gave the company an "overweight" rating in a research note on Wednesday, January 14th. Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a research note on Thursday, January 22nd. Truist Financial began coverage on shares of Lemonade in a report on Tuesday, January 6th. They issued a "buy" rating and a $98.00 target price for the company. Keefe, Bruyette & Woods increased their price target on Lemonade from $35.00 to $40.00 and gave the company an "underperform" rating in a research note on Tuesday, November 25th. Finally, Morgan Stanley set a $85.00 target price on shares of Lemonade and gave the stock an "equal weight" rating in a research report on Tuesday, December 16th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $71.50.

Lemonade Trading Down 5.7%

The company has a market cap of $6.11 billion, a price-to-earnings ratio of -34.26 and a beta of 2.02. The stock's 50-day moving average is $79.90 and its 200-day moving average is $63.48.

Lemonade (NYSE:LMND - Get Free Report) last issued its earnings results on Wednesday, November 5th. The company reported ($0.51) EPS for the quarter, beating analysts' consensus estimates of ($0.72) by $0.21. The business had revenue of $194.50 million during the quarter, compared to analyst estimates of $185.06 million. Lemonade had a negative return on equity of 31.86% and a negative net margin of 26.39%.The firm's revenue was up 42.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.95) EPS. As a group, analysts predict that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Buying and Selling at Lemonade

In related news, Director Debra Schwartz sold 4,200 shares of the firm's stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $83.59, for a total value of $351,078.00. Following the transaction, the director owned 21,567 shares of the company's stock, valued at approximately $1,802,785.53. This trade represents a 16.30% decrease in their position. 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 7,919 shares of Lemonade stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $81.15, for a total value of $642,626.85. Following the transaction, the chief operating officer owned 188,391 shares of the company's stock, valued at $15,287,929.65. This trade represents a 4.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 306,350 shares of company stock worth $25,870,918. Company insiders own 12.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of LMND. Bayforest Capital Ltd purchased a new stake in Lemonade in the 3rd quarter valued at $25,000. Strategic Advocates LLC purchased a new stake in shares of Lemonade in the third quarter valued at about $33,000. Torren Management LLC purchased a new stake in shares of Lemonade in the fourth quarter valued at about $35,000. NewEdge Advisors LLC bought a new position in shares of Lemonade during the first quarter valued at about $35,000. Finally, Estabrook Capital Management purchased a new position in Lemonade during the second quarter worth about $44,000. Hedge funds and other institutional investors own 80.30% of the company's stock.

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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