Morgan Stanley Issues Positive Forecast for Lemonade (NYSE:LMND) Stock Price

Key Points

• Morgan Stanley raised its price target on Lemonade from $49 to $53 but kept an "underweight" rating, implying a potential 24.49% downside from the current share price.
• Analyst coverage is mixed and the MarketBeat consensus is "Reduce" with a consensus price target of $49.33 (one Strong Buy, one Buy, one Hold, four Sell).
• Lemonade beat Q3 expectations, reporting EPS of ($0.51) vs. ($0.72) expected and revenue of $194.5M, up 42.4% year‑over‑year.

Lemonade (NYSE:LMND - Get Free Report) had its price objective raised by equities researchers at Morgan Stanley from $49.00 to $53.00 in a report issued on Monday,Benzinga reports. The brokerage currently has an "underweight" rating on the stock. Morgan Stanley's target price would indicate a potential downside of 24.49% from the company's current price.

Several other research analysts have also weighed in on LMND. BMO Capital Markets increased their price objective on shares of Lemonade from $23.00 to $42.00 and gave the stock an "underperform" rating in a report on Monday, August 18th. Piper Sandler cut their target price on Lemonade from $60.00 to $55.00 and set a "neutral" rating on the stock in a research report on Friday, October 10th. Wall Street Zen raised Lemonade from a "sell" rating to a "hold" rating in a research report on Saturday, August 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a research note on Wednesday, October 8th. Finally, Cantor Fitzgerald raised Lemonade to a "strong-buy" rating in a research note on Wednesday, August 13th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $49.33.

Lemonade Stock Performance

Lemonade stock traded down $0.30 during midday trading on Monday, reaching $70.19. 641,055 shares of the company were exchanged, compared to its average volume of 2,424,692. The firm's 50-day simple moving average is $57.60 and its 200-day simple moving average is $47.28. Lemonade has a 1 year low of $24.31 and a 1 year high of $83.77. The company has a market capitalization of $5.25 billion, a price-to-earnings ratio of -29.14 and a beta of 2.26.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.72) by $0.21. The company had revenue of $194.50 million for the quarter, compared to analysts' expectations of $185.06 million. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The firm's revenue for the quarter was up 42.4% compared to the same quarter last year. During the same period last year, the company earned ($0.95) EPS. Lemonade has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. On average, analysts forecast that Lemonade will post -3.03 EPS for the current fiscal year.

Insider Transactions at Lemonade

In related news, COO Adina Eckstein sold 5,988 shares of the business's stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $78.00, for a total value of $467,064.00. Following the transaction, the chief operating officer owned 227,987 shares in the company, valued at approximately $17,782,986. The trade was a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider John Sheldon Peters sold 2,718 shares of the firm's stock in a transaction that occurred 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 of the company's stock, valued at approximately $5,154,664.98. This trade represents a 2.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 48,988 shares of company stock worth $3,538,884. Corporate insiders own 12.50% of the company's stock.

Institutional Trading of Lemonade

Institutional investors and hedge funds have recently bought and sold shares of the company. Bayforest Capital Ltd bought a new stake in shares of Lemonade in the 3rd quarter valued at approximately $25,000. SVB Wealth LLC acquired a new position in Lemonade in the first quarter worth $26,000. NewEdge Advisors LLC bought a new stake in Lemonade during the first quarter valued at $35,000. Estabrook Capital Management acquired a new stake in shares of Lemonade during the second quarter worth $44,000. Finally, Migdal Insurance & Financial Holdings Ltd. lifted its position in shares of Lemonade by 30.7% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,034 shares of the company's stock worth $45,000 after buying an additional 243 shares during the last quarter. Institutional investors and hedge funds own 80.30% of the company's stock.

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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