Piper Sandler Cuts Lemonade (NYSE:LMND) Price Target to $62.00

Key Points

• Piper Sandler cut its price target on Lemonade to $62 (from $65) and kept a "neutral" rating, a target that implies roughly a 9.6% upside from the stock's current level.
• Q1 results beat expectations—EPS of ($0.47) vs. ($0.58) est. and revenue of $258M (+70.6% YoY)—with management giving Q2 revenue guidance roughly in line with consensus and reiterating ~FY26 revenue near $1.2B, citing reinsurance reductions and AI/automation as margin tailwinds.
• Analyst views are mixed (consensus rating: Hold, consensus target ~$64.88), while institutional buying has increased recently even as insiders have sold and the stock saw sharp intraday volatility after the earnings release.

Lemonade (NYSE:LMND - Get Free Report) had its price objective decreased by equities researchers at Piper Sandler from $65.00 to $62.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Piper Sandler's target price indicates a potential upside of 9.56% from the company's current price.

LMND has been the topic of a number of other research reports. Cantor Fitzgerald lifted their price target on shares of Lemonade from $85.00 to $92.00 and gave the stock an "overweight" rating in a report on Wednesday, January 14th. Morgan Stanley raised Lemonade from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $80.00 to $85.00 in a report on Tuesday, March 17th. Wolfe Research set a $44.00 price target on Lemonade in a research note on Tuesday, February 24th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lemonade in a research note on Tuesday, April 21st. Finally, Citigroup reissued an "outperform" rating on shares of Lemonade in a research report on Friday, January 16th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $64.88.

Lemonade Stock Up 1.1%

Shares of LMND stock traded up $0.59 during mid-day trading on Thursday, reaching $56.59. 1,138,568 shares of the stock traded hands, compared to its average volume of 2,360,425. The company has a market cap of $4.35 billion, a price-to-earnings ratio of -24.87 and a beta of 2.04. The stock's fifty day simple moving average is $60.17 and its two-hundred day simple moving average is $68.40. Lemonade has a 1-year low of $28.47 and a 1-year high of $99.90.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported ($0.47) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.58) by $0.11. Lemonade had a negative return on equity of 31.19% and a negative net margin of 22.43%.The company had revenue of $258.00 million during the quarter, compared to the consensus estimate of $251.50 million. During the same quarter in the prior year, the firm posted ($0.86) earnings per share. The firm's revenue was up 70.6% compared to the same quarter last year. On average, equities research analysts anticipate that Lemonade will post -1.74 EPS for the current fiscal year.

Insider Activity

In other news, insider John Sheldon Peters sold 3,571 shares of the business's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $52.50, for a total value of $187,477.50. Following the transaction, the insider directly owned 76,729 shares of the company's stock, valued at $4,028,272.50. The trade was a 4.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Over the last 90 days, insiders sold 5,567 shares of company stock valued at $287,517. 14.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Lemonade

A number of hedge funds have recently added to or reduced their stakes in LMND. AQR Capital Management LLC grew its position in shares of Lemonade by 107.3% during the 1st quarter. AQR Capital Management LLC now owns 30,490 shares of the company's stock worth $958,000 after buying an additional 15,779 shares during the period. Millennium Management LLC boosted its stake in Lemonade by 255.2% during the first quarter. Millennium Management LLC now owns 329,934 shares of the company's stock worth $10,370,000 after acquiring an additional 237,044 shares in the last quarter. NewEdge Advisors LLC bought a new stake in Lemonade in the first quarter valued at $35,000. Goldman Sachs Group Inc. grew its stake in shares of Lemonade by 7.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company's stock valued at $19,244,000 after buying an additional 41,759 shares during the period. Finally, Prudential Financial Inc. acquired a new stake in Lemonade in the second quarter valued at approximately $307,000. 80.30% of the stock is currently owned by institutional investors.

Key Stories Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q1 results beat expectations — EPS of ($0.47) vs. ($0.58) est. and revenue of $258M (revenue +70.6% YoY), showing meaningful top-line acceleration. This is the primary fundamental driver supporting the stock. Read More.
• Positive Sentiment: Guidance and scale: management provided Q2 revenue guidance roughly in-line with consensus ($287–$290M) and reiterated ~FY26 revenue near $1.2B, signaling continued high-growth cadence and visibility into 2026 revenue. Read More.
• Positive Sentiment: Profitability tailwinds from reinsurance and AI: analysts highlight a sharp reduction in reinsurance share (reported as ~55% to ~20%) plus automation, pet insurance expansion and AI-driven efficiencies that should improve loss ratios and margin capture over time. Those structural changes underpin longer-term upside. Read More.
• Neutral Sentiment: Analyst reaction mixed but not bearish — Citizens Jmp trimmed its price target from $85 to $80 while keeping a Market Outperform rating, signaling confidence but a modestly lower near-term valuation view. Read More.
• Neutral Sentiment: Investor materials and call transcripts released; management commentary emphasized AI/automation and product diversification (including pet) as growth drivers — useful for assessing path to adjusted EBITDA. Read More.
• Negative Sentiment: Short-term selling and volatility: despite the beat, the stock experienced a sharp intraday sell-off in early trading (investors cited profit-taking, elevated valuation concerns, and positioning), which injected near-term volatility. Read More.
• Negative Sentiment: Index and positioning debate: discussion about Russell index effects and broader positioning may have amplified moves and added liquidity-driven pressure that’s not tied to fundamentals. Read More.

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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