Lemonade (NYSE:LMND) Sets New 52-Week Low - Should You Sell?

Key Points

• Lemonade shares fell 6.5% to a new 52-week low of $42.60, below both their 50-day and 200-day moving averages.
• Analyst sentiment is mixed but centers on a “Hold” consensus, with an average price target of $63.50; several firms recently lowered targets or maintained neutral ratings.
• The company continues to post strong revenue growth, up 79.4% year over year, but remains unprofitable, reporting a quarterly loss of $0.56 per share and negative net margins.

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s stock price hit a new 52-week low during trading on Friday. The company traded as low as $42.60 and last traded at $42.62, with a volume of 643,554 shares changing hands. The stock had previously closed at $45.91.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the stock. Piper Sandler lowered their target price 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. Wall Street Zen raised shares of Lemonade from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. Morgan Stanley decreased their target price on Lemonade from $56.00 to $48.00 and set an "equal weight" rating for the company in a research note on Tuesday, October 6th. Weiss Ratings restated a "sell (d-)" rating on shares of Lemonade in a research report on Thursday, October 15th. Finally, Keefe, Bruyette & Woods upgraded shares of Lemonade from an "underperform" rating to a "market perform" rating and set a $48.00 target price for the company in a report on Thursday, July 30th. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $63.50.

Lemonade Trading Down 6.5%

The firm has a market cap of $3.32 billion, a price-to-earnings ratio of -23.40 and a beta of 1.87. The company has a 50 day moving average of $48.01 and a 200 day moving average of $58.86.

Lemonade (NYSE:LMND - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.56). The business had revenue of $294.40 million for the quarter, compared to the consensus estimate of $291.01 million. Lemonade had a negative net margin of 14.19% and a negative return on equity of 26.78%. The firm's quarterly revenue was up 79.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.60) EPS. As a group, sell-side analysts anticipate that Lemonade, Inc. will post -1.83 EPS for the current fiscal year.

Insider Transactions at Lemonade

In related news, insider John Peters sold 11,000 shares of the company's stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $52.55, for a total transaction of $578,050.00. Following the sale, the insider owned 76,942 shares in the company, valued at approximately $4,043,302.10. This represents a 12.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Maya Prosor sold 1,040 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total value of $56,815.20. Following the transaction, the insider directly owned 186,533 shares in the company, valued at approximately $10,190,297.79. This trade represents a 0.55% decrease in their position. 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 90 days, insiders have sold 15,148 shares of company stock valued at $804,250. Company insiders own 12.20% of the company's stock.

Institutional Trading of Lemonade

A number of institutional investors and hedge funds have recently bought and sold shares of LMND. BlackRock Inc. purchased a new position in Lemonade in the second quarter valued at approximately $393,408,000. Bank of America Corp DE lifted its position in Lemonade by 52.1% in the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company's stock worth $22,591,000 after buying an additional 123,484 shares during the last quarter. Lido Advisors LLC bought a new position in shares of Lemonade in the first quarter worth approximately $1,318,000. Baird Financial Group Inc. purchased a new stake in Lemonade in the 2nd quarter worth approximately $3,529,000. Finally, Deutsche Bank AG bought a new position in Lemonade in the second quarter worth about $5,078,000. 80.30% of the stock is currently owned by institutional investors and hedge funds.

Lemonade Company Profile

Lemonade, Inc is a technology-driven insurance company that offers insurance products through digital platforms, including its mobile application and website. The company uses artificial intelligence, automation and data analytics to support policy purchasing, customer service and claims processing.

Lemonade's product offerings include renters, homeowners, car, pet and term life insurance. Coverage and product availability vary by jurisdiction, and some policies are provided through regulated insurance subsidiaries or underwritten in partnership with other insurers.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade serves customers in the United States and selected European markets, including Germany, the Netherlands, France and the United Kingdom.

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