Lemonade (NYSE:LMND) Trading 7.7% Higher - Here's Why

Key Points

• Lemonade, Inc. saw a significant stock increase of 7.7% during mid-day trading, closing at $52.75 after previously closing at $48.98.
• Analysts have mixed opinions on Lemonade, with an average rating of "Hold" and a target price averaging $30.50, while some firms like Keefe, Bruyette & Woods have set targets as low as $26.00.
• The company reported a 34.5% increase in quarterly revenue year-over-year, totaling $164.10 million, while it narrowly beat the EPS expectations.

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s stock price was up 7.7% on Monday . The company traded as high as $53.11 and last traded at $52.75. Approximately 2,422,189 shares changed hands during mid-day trading, an increase of 5% from the average daily volume of 2,299,452 shares. The stock had previously closed at $48.98.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on LMND shares. Keefe, Bruyette & Woods restated an "underperform" rating and issued a $26.00 price target (up from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. Wall Street Zen upgraded shares of Lemonade from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. Piper Sandler reiterated a "neutral" rating and issued a $55.00 target price on shares of Lemonade in a research note on Thursday. Morgan Stanley reiterated an "underweight" rating and issued a $26.00 target price (up from $24.00) on shares of Lemonade in a research note on Monday, July 14th. Finally, BMO Capital Markets lifted their target price on shares of Lemonade from $15.00 to $23.00 and gave the stock an "underperform" rating in a research note on Wednesday, July 2nd. Four research analysts have rated the stock with a sell rating, two have issued a hold rating, one has given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, Lemonade presently has an average rating of "Hold" and a consensus price target of $37.71.

Lemonade Price Performance

The stock's fifty day moving average is $43.10 and its 200-day moving average is $36.08. The stock has a market cap of $4.24 billion, a PE ratio of -20.26 and a beta of 2.19.

Lemonade (NYSE:LMND - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported ($0.60) EPS for the quarter, beating analysts' consensus estimates of ($0.81) by $0.21. Lemonade had a negative net margin of 33.96% and a negative return on equity of 36.12%. The company had revenue of $164.10 million for the quarter, compared to analysts' expectations of $160.88 million. During the same quarter in the prior year, the company posted ($0.81) earnings per share. Lemonade's revenue for the quarter was up 34.5% compared to the same quarter last year. On average, sell-side analysts expect that Lemonade, Inc. will post -3.03 EPS for the current fiscal year.

Insider Activity

In other news, COO Adina Eckstein sold 5,000 shares of the stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $49.00, for a total transaction of $245,000.00. Following the sale, the chief operating officer owned 189,653 shares of the company's stock, valued at approximately $9,292,997. This represents a 2.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider John Sheldon Peters sold 6,543 shares of the company's stock in a transaction that occurred on Monday, June 23rd. The stock was sold at an average price of $45.00, for a total transaction of $294,435.00. Following the sale, the insider owned 106,115 shares in the company, valued at $4,775,175. The trade was a 5.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 18,289 shares of company stock worth $825,982 in the last three months. Corporate insiders own 14.70% of the company's stock.

Hedge Funds Weigh In On Lemonade

Hedge funds have recently added to or reduced their stakes in the stock. The Manufacturers Life Insurance Company lifted its holdings in shares of Lemonade by 7.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 31,000 shares of the company's stock worth $1,137,000 after purchasing an additional 2,209 shares during the period. Invesco Ltd. lifted its holdings in Lemonade by 14.0% in the fourth quarter. Invesco Ltd. now owns 76,718 shares of the company's stock valued at $2,814,000 after acquiring an additional 9,419 shares during the period. GAMMA Investing LLC lifted its holdings in Lemonade by 35,901.8% in the first quarter. GAMMA Investing LLC now owns 19,801 shares of the company's stock valued at $630,000 after acquiring an additional 19,746 shares during the period. Northern Trust Corp lifted its holdings in Lemonade by 23.7% in the fourth quarter. Northern Trust Corp now owns 562,502 shares of the company's stock valued at $20,633,000 after acquiring an additional 107,592 shares during the period. Finally, Halter Ferguson Financial Inc. lifted its holdings in Lemonade by 62.8% in the first quarter. Halter Ferguson Financial Inc. now owns 476,764 shares of the company's stock valued at $14,985,000 after acquiring an additional 183,974 shares during the period. 80.30% of the stock is currently owned by hedge funds and other 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.