Lemonade's (LMND) Equal Weight Rating Reaffirmed at Morgan Stanley

Key Points

• Morgan Stanley reaffirmed its Equal Weight rating on Lemonade and kept a $75 price target, which implies about 3.5% downside from the stock’s current price.
• Lemonade’s latest quarterly results topped expectations, with EPS of -$0.47 versus the -$0.58 consensus and revenue of $258 million, up 70.6% year over year.
• Analyst sentiment remains mixed overall: Lemonade has a Hold consensus rating and a $64.89 average price target, while recent insider sales and heavy institutional ownership were also highlighted.

Lemonade (NYSE:LMND - Get Free Report)'s stock had its "equal weight" rating reissued by equities research analysts at Morgan Stanley in a research report issued on Wednesday, MarketBeat.com reports. They currently have a $75.00 target price on the stock. Morgan Stanley's price objective indicates a potential downside of 3.49% from the stock's current price.

LMND has been the subject of several other reports. UBS Group set a $75.00 target price on shares of Lemonade in a research note on Thursday, May 21st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a report on Tuesday, April 21st. 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 research report on Wednesday, April 29th. TD Cowen restated a "hold" rating on shares of Lemonade in a research report on Monday, June 8th. Finally, Citizens Jmp reduced their price target on Lemonade from $85.00 to $80.00 and set a "market outperform" rating for the company in a report on Thursday, April 30th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Lemonade presently has an average rating of "Hold" and a consensus price target of $64.89.

Lemonade Stock Performance

Shares of LMND opened at $77.72 on Wednesday. The company has a market capitalization of $5.97 billion, a P/E ratio of -41.56 and a beta of 1.79. The business's 50-day moving average is $58.54 and its two-hundred day moving average is $65.26. Lemonade has a fifty-two week low of $35.70 and a fifty-two week high of $99.90.

Lemonade (NYSE:LMND - Get Free Report) last posted its earnings results on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, topping the consensus estimate of ($0.58) by $0.11. Lemonade had a negative return on equity of 26.52% and a negative net margin of 16.44%.The firm had revenue of $258.00 million for the quarter, compared to analyst estimates of $251.51 million. During the same period last year, the company earned ($0.86) earnings per share. Lemonade's revenue for the quarter was up 70.6% compared to the same quarter last year. Analysts forecast that Lemonade will post -1.71 EPS for the current year.

Insider Transactions at Lemonade

In related news, insider Maya Prosor sold 1,220 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total transaction of $64,867.40. Following the completion of the sale, the insider directly owned 187,573 shares in the company, valued at approximately $9,973,256.41. This trade represents a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 Lemonade stock in a transaction dated 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 directly owned 81,386 shares in the company, valued at $4,308,574.84. This trade represents a 4.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 6,563 shares of company stock worth $348,125 over the last ninety days. 12.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Lemonade

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in Lemonade by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 6,305,453 shares of the company's stock worth $448,822,000 after acquiring an additional 26,312 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Lemonade by 186.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,484,175 shares of the company's stock valued at $105,644,000 after purchasing an additional 965,321 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of Lemonade by 4.9% in the 4th quarter. Geode Capital Management LLC now owns 1,438,358 shares of the company's stock valued at $102,400,000 after purchasing an additional 67,562 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Lemonade by 28.1% during the 2nd quarter. Bank of America Corp DE now owns 993,669 shares of the company's stock worth $43,533,000 after purchasing an additional 217,913 shares during the period. Finally, Goldman Sachs Group Inc. increased its position in shares of Lemonade by 50.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 866,476 shares of the company's stock worth $61,676,000 after purchasing an additional 291,122 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

About Lemonade

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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