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

Key Points

• Lemonade, Inc. experienced a significant spike in options trading, with 14,410 call options purchased, a 49% increase from its usual volume.
• The company's stock rose 24.9% to $46.23, significantly higher than its average trading volume, driven by positive quarterly earnings results that exceeded expectations.
• Analyst ratings for Lemonade show mixed sentiments, with several firms adjusting target prices while maintaining predominantly "underperform" or "sell" ratings.

Lemonade, Inc. (NYSE:LMND - Get Free Report) was the target of unusually large options trading on Tuesday. Stock investors acquired 14,410 call options on the stock. Thisrepresentsanincreaseof49% compared to the typical daily volume of 9,687 call options.

Lemonade Trading Up 24.9%

Shares of LMND traded up $9.23 during mid-day trading on Tuesday, hitting $46.23. 8,665,178 shares of the company's stock were exchanged, compared to its average volume of 2,221,752. Lemonade has a fifty-two week low of $14.90 and a fifty-two week high of $53.85. The firm has a market capitalization of $3.39 billion, a P/E ratio of -15.25 and a beta of 2.19. The business's 50 day moving average is $39.81 and its two-hundred day moving average is $34.83.

Lemonade (NYSE:LMND - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported ($0.60) earnings per share for the quarter, topping the consensus estimate of ($0.81) by $0.21. Lemonade had a negative net margin of 38.90% and a negative return on equity of 36.72%. The business had revenue of $164.10 million during the quarter, compared to the consensus estimate of $160.88 million. During the same quarter in the prior year, the firm earned ($0.81) earnings per share. The business's quarterly revenue was up 34.5% compared to the same quarter last year. On average, equities research analysts forecast that Lemonade will post -3.03 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. BMO Capital Markets upped their price objective on Lemonade from $15.00 to $23.00 and gave the company an "underperform" rating in a report on Wednesday, July 2nd. Wall Street Zen lowered Lemonade from a "hold" rating to a "sell" rating in a research report on Saturday, July 26th. Keefe, Bruyette & Woods reissued an "underperform" rating and issued a $26.00 target price (up previously from $22.00) on shares of Lemonade in a report on Tuesday, July 1st. Finally, Morgan Stanley reissued an "underweight" rating and issued a $26.00 target price (up previously from $24.00) on shares of Lemonade in a report on Monday, July 14th. Five research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $30.50.

Insider Transactions at Lemonade

In other news, major shareholder Softbank Group Capital Ltd sold 500,000 shares of the business's stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $32.25, for a total transaction of $16,125,000.00. Following the transaction, the insider directly owned 7,498,723 shares in the company, valued at $241,833,816.75. The trade was a 6.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, COO Adina Eckstein sold 5,000 shares of the company's stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $45.00, for a total value of $225,000.00. Following the completion of the transaction, the chief operating officer owned 189,653 shares in the company, valued at $8,534,385. This represents a 2.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,688,653 shares of company stock worth $53,969,915 in the last ninety days. Insiders own 12.50% of the company's stock.

Institutional Investors Weigh In On Lemonade

Several hedge funds have recently made changes to their positions in LMND. SVB Wealth LLC acquired a new stake in Lemonade in the first quarter valued at about $26,000. Quarry LP increased its holdings in Lemonade by 300.4% in the fourth quarter. Quarry LP now owns 933 shares of the company's stock valued at $34,000 after buying an additional 700 shares in the last quarter. NewEdge Advisors LLC purchased a new position in shares of Lemonade during the 1st quarter worth approximately $35,000. Russell Investments Group Ltd. increased its stake in shares of Lemonade by 318.8% during the 4th quarter. Russell Investments Group Ltd. now owns 1,139 shares of the company's stock worth $42,000 after purchasing an additional 867 shares in the last quarter. Finally, Hollencrest Capital Management purchased a new position in shares of Lemonade during the 1st quarter worth approximately $41,000. Institutional investors and hedge funds own 80.30% of the company's stock.

About Lemonade

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.