Lemonade (NYSE:LMND) Sets New 12-Month Low - Here's What Happened

Key Points

• Lemonade shares hit a new 52-week low, falling to $42.70 and trading below both their 50-day ($49.69) and 200-day ($56.60) moving averages.
• Analyst sentiment is mixed but leans toward “Hold”: the consensus price target is $63.50, while several firms recently lowered targets, including Morgan Stanley to $48 and Piper Sandler to $51.
• Lemonade’s latest quarter showed 79.4% year-over-year revenue growth to $294.4 million, but the company remained unprofitable with a $0.56 per-share loss and analysts forecasting a $1.84 full-year loss.

Lemonade, Inc. (NYSE:LMND - Get Free Report) shares reached a new 52-week low on Wednesday. The stock traded as low as $42.70 and last traded at $43.3210, with a volume of 232,690 shares traded. The stock had previously closed at $44.71.

Analyst Ratings Changes

A number of brokerages have commented on LMND. Wall Street Zen upgraded Lemonade from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. Piper Sandler reduced their price target on shares of Lemonade from $75.00 to $51.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. Weiss Ratings reissued a "sell (d-)" rating on shares of Lemonade in a report on Friday, July 17th. Keefe, Bruyette & Woods upgraded shares of Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 price target for the company in a research report on Thursday, July 30th. Finally, Morgan Stanley dropped their price objective on shares of Lemonade from $56.00 to $48.00 and set an "equal weight" rating on the stock in a report on Tuesday, October 6th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $63.50.

Lemonade Stock Performance

The company's 50 day moving average price is $49.69 and its 200-day moving average price is $56.60. The company has a market cap of $3.44 billion, a price-to-earnings ratio of -24.27 and a beta of 1.87.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.56). The business had revenue of $294.40 million during the quarter, compared to analyst estimates of $291.01 million. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%. Lemonade's revenue for the quarter was up 79.4% on a year-over-year basis. During the same quarter last year, the company posted ($0.60) EPS. As a group, sell-side analysts forecast that Lemonade, Inc. will post -1.84 earnings per share for the current year.

Insider Activity

In related news, insider John Peters sold 2,249 shares of Lemonade stock in a transaction on Friday, September 4th. The shares were sold at an average price of $54.45, for a total value of $122,458.05. Following the transaction, the insider owned 73,834 shares in the company, valued at $4,020,261.30. This trade represents a 2.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, insider Maya Prosor sold 1,040 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total value of $56,815.20. Following the completion of the sale, the insider directly owned 186,533 shares of the company's stock, valued at $10,190,297.79. This represents a 0.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 15,148 shares of company stock valued at $804,250. 12.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fermata Advisors LLC increased its position in Lemonade by 6.4% in the 3rd quarter. Fermata Advisors LLC now owns 7,200 shares of the company's stock valued at $325,000 after acquiring an additional 432 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in shares of Lemonade by 88.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 3,853 shares of the company's stock valued at $174,000 after purchasing an additional 1,811 shares during the period. Engineers Gate Manager LP acquired a new position in Lemonade in the second quarter valued at about $1,229,000. Integrated Wealth Concepts LLC acquired a new position in Lemonade during the second quarter valued at approximately $128,000. Finally, NewEdge Advisors LLC grew its holdings in shares of Lemonade by 9.7% in the 2nd quarter. NewEdge Advisors LLC now owns 7,041 shares of the company's stock valued at $458,000 after buying an additional 621 shares during the period. Institutional investors own 80.30% of the company's stock.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers insurance products through mobile applications and online platforms. Its business uses artificial intelligence, automation and behavioral economics to simplify policy purchases, claims processing and customer service.

The company provides renters, homeowners, car, pet and term life insurance, with product availability varying by location. Lemonade's digital platform is designed to allow customers to obtain quotes, manage policies and submit claims without relying primarily on traditional insurance agents.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade initially focused on renters insurance before expanding into additional insurance categories.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.