Lemonade (NYSE:LMND) Upgraded by Keefe, Bruyette & Woods to Market Perform Rating

Key Points

• Keefe, Bruyette & Woods upgraded Lemonade to “market perform” from “underperform” and set a $48 price target, implying roughly 1.7% upside. Overall analyst sentiment remains “Hold,” with an average target price of $66.78.
• Lemonade reported second-quarter revenue of $294.4 million, up 79.4% year over year and ahead of estimates, while adjusted EPS of negative $0.56 matched expectations. Despite strong growth, the company remains unprofitable, with a 16.44% negative net margin.
• Institutional investors own approximately 80.3% of Lemonade’s shares, while insiders sold 10,007 shares worth about $620,201 over the past 90 days.

Lemonade (NYSE:LMND - Get Free Report) was upgraded by Keefe, Bruyette & Woods from an "underperform" rating to a "market perform" rating in a research report issued on Thursday. The brokerage presently has a $48.00 price objective on the stock. Keefe, Bruyette & Woods' price objective suggests a potential upside of 1.71% from the stock's current price.

A number of other equities research analysts have also weighed in on the stock. TD Cowen reissued a "hold" rating on shares of Lemonade in a report on Monday, June 8th. Cantor Fitzgerald restated an "overweight" rating on shares of Lemonade in a research note on Tuesday, May 26th. Piper Sandler upped their target price on Lemonade from $62.00 to $75.00 and gave the company a "neutral" rating in a research report on Wednesday, July 15th. Truist Financial cut their price target on shares of Lemonade from $98.00 to $70.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Lemonade in a research report on Friday, July 17th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Lemonade currently has an average rating of "Hold" and an average target price of $66.78.

Lemonade Stock Performance

Shares of NYSE LMND opened at $47.19 on Thursday. Lemonade has a fifty-two week low of $35.70 and a fifty-two week high of $99.90. The company has a market cap of $3.63 billion, a PE ratio of -25.24 and a beta of 1.79. The business has a 50-day simple moving average of $61.41 and a two-hundred day simple moving average of $63.86.

Lemonade (NYSE:LMND - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported ($0.56) EPS for the quarter, meeting the consensus estimate of ($0.56). The firm had revenue of $294.40 million during the quarter, compared to analyst estimates of $291.01 million. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. Lemonade's revenue was up 79.4% on a year-over-year basis. During the same period last year, the firm posted ($0.60) EPS. On average, sell-side analysts predict that Lemonade will post -1.7 earnings per share for the current fiscal year.

Insider Activity at Lemonade

In related news, insider John Sheldon Peters sold 3,444 shares of the business's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $79.00, for a total value of $272,076.00. Following the completion of the transaction, the insider directly owned 77,942 shares in the company, valued at $6,157,418. The trade was a 4.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Maya Prosor sold 1,220 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total transaction of $64,867.40. Following the sale, the insider directly owned 187,573 shares in the company, valued at $9,973,256.41. This trade represents 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. In the last 90 days, insiders sold 10,007 shares of company stock worth $620,201. Insiders own 12.20% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Handelsbanken Fonder AB grew its position in shares of Lemonade by 12.4% during the 2nd quarter. Handelsbanken Fonder AB now owns 20,800 shares of the company's stock valued at $1,353,000 after acquiring an additional 2,300 shares during the period. Bank of America Corp DE increased its stake in shares of Lemonade by 52.1% in the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company's stock valued at $22,591,000 after purchasing an additional 123,484 shares in the last quarter. Edgestream Partners L.P. acquired a new position in Lemonade in the 1st quarter worth about $814,000. California State Teachers Retirement System raised its holdings in Lemonade by 22.5% in the 1st quarter. California State Teachers Retirement System now owns 72,887 shares of the company's stock worth $4,569,000 after purchasing an additional 13,411 shares during the period. Finally, Royal Bank of Canada boosted its position in Lemonade by 148.5% during the first quarter. Royal Bank of Canada now owns 31,328 shares of the company's stock worth $1,964,000 after purchasing an additional 18,721 shares in the last quarter. Institutional investors and hedge funds own 80.30% of the company's stock.

Trending Headlines about Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Second-quarter revenue reached $294.4 million, up 79.4% year over year and ahead of analysts’ roughly $291 million estimate. Adjusted EPS of negative $0.56 matched consensus, while management’s third-quarter revenue forecast of $323 million to $326 million exceeded the $320.5 million consensus estimate. Lemonade Q2 Earnings Snapshot
• Positive Sentiment: Management highlighted a favorable shift in its reinsurance structure, continued progress toward profitability, and expanded use of artificial intelligence as potential long-term drivers of margins and operating leverage. Lemonade Favorable Reinsurance Shift
• Neutral Sentiment: Lemonade named Nick Stead, its senior vice president of finance, to succeed CFO Tim Bixby at year-end. Bixby is expected to join the company’s board, which could preserve continuity, although investors may still scrutinize the leadership change during the company’s path to profitability. Lemonade CFO Transition
• Negative Sentiment: The company remains unprofitable, reporting a $0.56 per-share loss, a negative net margin of 16.44%, and negative return on equity. Revenue growth was strong, but investors appear to want clearer evidence that the growth is translating into faster earnings improvement. Lemonade Q2 Key Metrics
• Negative Sentiment: Full-year revenue guidance of approximately $1.2 billion was generally in line with consensus rather than a major upward surprise. With LMND trading well below its 12-month high but still carrying a growth-stock valuation, the lack of a stronger outlook likely contributed to selling pressure. Lemonade Q2 Guidance and Valuation

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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