Lemonade Target of Unusually High Options Trading (NYSE:LMND)

Key Points

• Lemonade saw unusually heavy options activity on Monday, with traders buying 14,948 call options, about 32% above its typical daily volume.
• The stock edged higher by 0.7% to $51.81, though trading volume was below average and the shares remain well below their 50-day and 200-day moving averages.
• Recent fundamentals were mixed but better than expected: Lemonade beat quarterly EPS and revenue estimates, while analysts currently hold a consensus Hold rating with a $64.89 target price.

Lemonade, Inc. (NYSE:LMND - Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock traders acquired 14,948 call options on the stock. This represents an increase of approximately 32% compared to the typical daily volume of 11,338 call options.

Analyst Ratings Changes

LMND has been the subject of a number of research analyst reports. Truist Financial decreased their price objective on shares of Lemonade from $98.00 to $70.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a report on Tuesday, April 21st. Cantor Fitzgerald restated an "overweight" rating on shares of Lemonade in a report on Tuesday, May 26th. Wolfe Research set a $44.00 price objective on shares of Lemonade in a report on Tuesday, February 24th. Finally, Keefe, Bruyette & Woods raised their price objective on shares of Lemonade from $40.00 to $44.00 and gave the stock an "underperform" rating in a report on Tuesday, February 24th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $64.89.

Lemonade Trading Up 0.7%

Shares of LMND stock traded up $0.35 during trading hours on Monday, reaching $51.81. The stock had a trading volume of 960,805 shares, compared to its average volume of 2,167,461. The stock's fifty day simple moving average is $59.03 and its 200 day simple moving average is $67.43. Lemonade has a 12 month low of $35.70 and a 12 month high of $99.90. The firm has a market capitalization of $3.98 billion, a PE ratio of -27.73 and a beta of 1.83.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, beating 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 company had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.51 million. During the same period last year, the business earned ($0.86) earnings per share. Lemonade's revenue was up 70.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Lemonade will post -1.69 EPS for the current fiscal year.

Insider Buying and Selling at Lemonade

In other Lemonade news, insider Maya Prosor sold 1,220 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total transaction of $64,867.40. Following the transaction, the insider owned 187,573 shares in the company, valued at approximately $9,973,256.41. This represents a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 transaction of $191,007.52. Following the transaction, the insider owned 81,386 shares in the company, valued at approximately $4,308,574.84. The trade was a 4.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last 90 days, insiders have sold 6,563 shares of company stock worth $348,125. Corporate insiders own 14.70% of the company's stock.

Institutional Investors Weigh In On Lemonade

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Bank of America Corp DE raised its stake in Lemonade by 52.1% in the first 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. bought a new stake in shares of Lemonade in the 1st quarter worth approximately $814,000. California State Teachers Retirement System increased its stake in shares of Lemonade by 22.5% in the first quarter. California State Teachers Retirement System now owns 72,887 shares of the company's stock worth $4,569,000 after buying an additional 13,411 shares during the period. Royal Bank of Canada raised its holdings in Lemonade by 148.5% during the 1st quarter. Royal Bank of Canada now owns 31,328 shares of the company's stock valued at $1,964,000 after buying an additional 18,721 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in Lemonade by 9.3% during the 1st quarter. The Manufacturers Life Insurance Company now owns 35,439 shares of the company's stock valued at $2,221,000 after buying an additional 3,008 shares during the last quarter. 80.30% of the stock is owned by hedge funds and other institutional investors.

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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