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

Key Points

• Lemonade shares fell to a new 52-week low of $45.76, below the company’s 50-day and 200-day moving averages, amid a market capitalization of approximately $3.46 billion.
• Analyst sentiment remains cautious: Lemonade has a consensus “Hold” rating, with an average price target of $64.50, although several firms recently lowered their targets.
• The company’s latest quarterly results showed revenue rising 79.4% year over year to $294.4 million, while it posted a loss of $0.56 per share and continues to forecast an annual loss.

Shares of Lemonade, Inc. (NYSE:LMND - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $45.76 and last traded at $45.8850, with a volume of 231836 shares. The stock had previously closed at $47.69.

Wall Street Analyst Weigh In

Several research firms have issued reports on LMND. Wall Street Zen raised Lemonade from a "sell" rating to a "hold" rating in a report on Saturday. Piper Sandler dropped their target price on Lemonade from $75.00 to $51.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Morgan Stanley decreased their price target on Lemonade from $65.00 to $56.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 19th. Keefe, Bruyette & Woods upgraded Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 price objective for the company in a research report on Thursday, July 30th. Finally, TD Cowen restated a "hold" rating on shares of Lemonade in a research report on Monday, June 8th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $64.50.

Lemonade Stock Performance

The company has a 50-day moving average price of $53.87 and a 200-day moving average price of $58.12. The firm has a market capitalization of $3.46 billion, a P/E ratio of -24.45 and a beta of 1.87.

Lemonade (NYSE:LMND - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The company reported ($0.56) EPS for the quarter, meeting analysts' consensus estimates of ($0.56). Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%.The business had revenue of $294.40 million during the quarter, compared to the consensus estimate of $291.01 million. During the same quarter in the prior year, the company posted ($0.60) earnings per share. The firm's revenue was up 79.4% on a year-over-year basis. Equities analysts predict that Lemonade, Inc. will post -1.85 EPS for the current year.

Insider Transactions at Lemonade

In related news, insider John Peters sold 2,249 shares of the business's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $54.45, for a total transaction of $122,458.05. Following the completion of the transaction, the insider owned 73,834 shares in the company, valued at approximately $4,020,261.30. The trade was a 2.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 company's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total transaction 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. The trade was a 0.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 18,592 shares of company stock valued at $1,076,326. 12.20% of the stock is currently owned by company insiders.

Institutional Trading of Lemonade

Large investors have recently made changes to their positions in the company. Ameritas Advisory Services LLC bought a new position in shares of Lemonade during the 2nd quarter valued at about $30,000. State of Wyoming bought a new stake in Lemonade during the 1st quarter worth approximately $42,000. Global Retirement Partners LLC increased its stake in Lemonade by 182.0% during the 4th quarter. Global Retirement Partners LLC now owns 1,596 shares of the company's stock worth $114,000 after purchasing an additional 1,030 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in Lemonade during the 2nd quarter worth approximately $128,000. Finally, Nykredit A S acquired a new stake in Lemonade during the 2nd quarter worth approximately $156,000. Institutional investors own 80.30% of the company's stock.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers digital insurance products through its website and mobile applications. Its platform uses automation, artificial intelligence and behavioral economics to streamline policy applications, claims processing and customer service.

The company provides renters, homeowners, pet, term life and automobile insurance. Product availability varies by location, and Lemonade distributes its offerings through regulated insurance entities and licensed partners.

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