Lemonade (NYSE:LMND) Stock Price Up 5.9% - Time to Buy?

Key Points

• Lemonade shares rose 5.9% to about $43.06, though trading volume was 57% below its average.
• The company reported quarterly revenue of $336.1 million, up 72.8% year over year, and a loss per share of $0.56—slightly better than analysts expected.
• Analyst sentiment is mixed: the consensus rating is Hold, with a $60.50 average price target; several firms recently lowered their targets.

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s stock price shot up 5.9% during trading on Thursday. The company traded as high as $42.82 and last traded at $43.0580. 743,760 shares traded hands during trading, a decline of 57% from the average daily volume of 1,734,307 shares. The stock had previously closed at $40.66.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on LMND. Morgan Stanley lowered their price target on Lemonade from $56.00 to $48.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 6th. Keefe, Bruyette & Woods cut their price objective on Lemonade from $48.00 to $45.00 and set a "market perform" rating on the stock in a report on Monday. Piper Sandler set a $45.00 target price on Lemonade in a research note on Monday. Wall Street Zen cut Lemonade from a "hold" rating to a "sell" rating in a report on Saturday, November 7th. Finally, Truist Financial dropped their target price on Lemonade from $70.00 to $60.00 and set a "buy" rating for the company in a research report on Friday, November 6th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $60.50.

Lemonade Price Performance

The firm has a market capitalization of $3.37 billion, a price-to-earnings ratio of -22.95 and a beta of 1.98. The firm has a 50 day moving average price of $45.93 and a 200-day moving average price of $56.92.

Lemonade (NYSE:LMND - Get Free Report) last released its earnings results on Thursday, November 5th. The company reported ($0.56) EPS for the quarter, topping the consensus estimate of ($0.58) by $0.02. The firm had revenue of $336.10 million during the quarter, compared to analysts' expectations of $322.74 million. Lemonade had a negative return on equity of 28.59% and a negative net margin of 12.95%. Lemonade's revenue for the quarter was up 72.8% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.51) EPS. Equities research analysts predict that Lemonade, Inc. will post -1.85 earnings per share for the current year.

Insider Buying and Selling at Lemonade

In related news, insider Maya Prosor sold 1,040 shares of the stock in a transaction 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 owned 186,533 shares in the company, valued at $10,190,297.79. This represents a 0.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Peters sold 2,249 shares of the firm's stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $54.45, for a total value of $122,458.05. Following the transaction, the insider directly owned 73,834 shares in the company, valued at approximately $4,020,261.30. This represents a 2.96% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 4,148 shares of company stock worth $226,200 over the last quarter. 12.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lemonade

Large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in Lemonade during the second quarter worth $393,408,000. Bank of America Corp DE lifted its holdings in Lemonade by 52.1% in the first quarter. Bank of America Corp DE now owns 360,411 shares of the company's stock valued at $22,591,000 after acquiring an additional 123,484 shares during the period. Bank of New York Mellon Corp purchased a new stake in shares of Lemonade during the 2nd quarter worth $13,861,000. Canada Pension Plan Investment Board purchased a new stake in shares of Lemonade during the 2nd quarter worth $13,550,000. Finally, Man Group plc purchased a new stake in shares of Lemonade during the 2nd quarter worth $8,864,000. 80.30% of the stock is owned by hedge funds and other institutional investors.

Lemonade Company Profile

Lemonade, Inc. is a digital insurance company that uses technology and artificial intelligence to offer insurance products through its website and mobile app. Its offerings include renters, homeowners, car, pet and term life insurance, with product availability varying by location. Founded in 2015 by Daniel Schreiber and Shai Wininger, the company serves customers in the United States and several European markets. Lemonade is headquartered in New York City. Co-founder Daniel Schreiber leads the company as chief executive officer.

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