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

Key Points

• Lemonade, Inc. (NYSE:LMND) experienced a significant spike in options trading, with 18,760 call options purchased, reflecting a 41% increase over typical volumes.
• Analysts have varied opinions on Lemonade; while Piper Sandler maintains a "neutral" rating, Cantor Fitzgerald upgraded it to "strong buy", indicating mixed market sentiments.
• Insider trading activity includes John Sheldon Peters selling 2,718 shares and COO Adina Eckstein selling 5,000 shares, signaling potential concerns among insiders despite Lemonade's recent stock price increase of 7.8% to reach $56.66.

Lemonade, Inc. (NYSE:LMND - Get Free Report) saw some unusual options trading activity on Monday. Stock investors bought 18,760 call options on the stock. This represents an increase of approximately 41% compared to the typical daily volume of 13,314 call options.

Analyst Ratings Changes

A number of brokerages have recently commented on LMND. Piper Sandler reaffirmed a "neutral" rating and issued a $55.00 price target on shares of Lemonade in a research note on Thursday, August 14th. Cantor Fitzgerald raised Lemonade to a "strong-buy" rating in a research note on Wednesday, August 13th. Wall Street Zen raised Lemonade from a "sell" rating to a "hold" rating in a research note on Saturday, August 9th. BMO Capital Markets increased their target price on Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a research note on Monday, August 18th. Finally, Morgan Stanley reissued an "underweight" rating on shares of Lemonade in a research note on Monday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $40.43.

Insider Buying and Selling at Lemonade

In other news, insider John Sheldon Peters sold 2,718 shares of the business's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $50.34, for a total value of $136,824.12. Following the sale, the insider owned 102,397 shares in the company, valued at approximately $5,154,664.98. The trade was a 2.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Adina Eckstein sold 5,000 shares of the company's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $49.00, for a total transaction of $245,000.00. Following the transaction, the chief operating officer owned 189,653 shares in the company, valued at approximately $9,292,997. This trade represents a 2.57% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 19,543 shares of company stock worth $915,455 in the last 90 days. 12.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Lemonade

Hedge funds and other institutional investors have recently modified their holdings of the stock. Nomura Holdings Inc. bought a new stake in Lemonade during the first quarter valued at about $416,000. Caxton Associates LLP purchased a new position in shares of Lemonade during the 1st quarter valued at about $1,455,000. Dynamic Technology Lab Private Ltd bought a new position in shares of Lemonade during the 1st quarter valued at approximately $638,000. GAMMA Investing LLC grew its stake in shares of Lemonade by 35,901.8% during the 1st 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. Finally, Halter Ferguson Financial Inc. increased its holdings in Lemonade by 62.8% in the 1st quarter. Halter Ferguson Financial Inc. now owns 476,764 shares of the company's stock worth $14,985,000 after acquiring an additional 183,974 shares in the last quarter. 80.30% of the stock is currently owned by hedge funds and other institutional investors.

Lemonade Trading Up 7.8%

NYSE:LMND traded up $4.09 during mid-day trading on Monday, reaching $56.66. The company's stock had a trading volume of 3,959,514 shares, compared to its average volume of 2,321,426. Lemonade has a 12-month low of $15.27 and a 12-month high of $60.41. The firm's fifty day moving average price is $47.55 and its two-hundred day moving average price is $38.69. The stock has a market cap of $4.19 billion, a P/E ratio of -20.02 and a beta of 2.27.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported ($0.60) earnings per share for the quarter, beating the consensus estimate of ($0.81) by $0.21. The firm had revenue of $164.10 million for the quarter, compared to analysts' expectations of $160.88 million. Lemonade had a negative return on equity of 36.12% and a negative net margin of 33.96%.The company's revenue was up 34.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.81) EPS. Lemonade has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Analysts predict that Lemonade will post -3.03 earnings per share for the current fiscal year.

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.

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