William Blair Has Bearish Estimate for Lemonade Q3 Earnings

Key Points

• William Blair revised its Q3 2025 earnings estimate for Lemonade, expecting a loss of ($0.74) per share, lower than the previous estimate of ($0.72).
• Lemonade's recent earnings report showed a narrower loss of ($0.60) EPS, which was above the consensus estimate of ($0.81), along with a revenue increase of 34.5% year-over-year.
• The stock currently has a consensus rating of "Reduce" from analysts, with a price target averaging at $30.50 despite recent insider selling and varying ratings from other investment firms.

Lemonade, Inc. (NYSE:LMND - Free Report) - Investment analysts at William Blair cut their Q3 2025 earnings estimates for shares of Lemonade in a research report issued on Tuesday, August 5th. William Blair analyst A. Klauber now forecasts that the company will post earnings per share of ($0.74) for the quarter, down from their previous forecast of ($0.72). The consensus estimate for Lemonade's current full-year earnings is ($3.03) per share. William Blair also issued estimates for Lemonade's FY2025 earnings at ($2.65) EPS and FY2026 earnings at ($1.50) EPS.

Lemonade (NYSE:LMND - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported ($0.60) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.81) by $0.21. Lemonade had a negative net margin of 33.96% and a negative return on equity of 36.12%. The company had revenue of $164.10 million for the quarter, compared to the consensus estimate of $160.88 million. During the same quarter in the previous year, the firm posted ($0.81) EPS. The business's revenue was up 34.5% compared to the same quarter last year.

Several other analysts have also weighed in on LMND. BMO Capital Markets lifted their target price on shares of Lemonade from $15.00 to $23.00 and gave the company an "underperform" rating in a research report on Wednesday, July 2nd. Keefe, Bruyette & Woods reiterated an "underperform" rating and set a $26.00 target price (up from $22.00) on shares of Lemonade in a research report on Tuesday, July 1st. Wall Street Zen upgraded shares of Lemonade from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, Morgan Stanley reiterated an "underweight" rating and set a $26.00 target price (up from $24.00) on shares of Lemonade in a research report on Monday, July 14th. Four research analysts have rated the stock with a sell rating, two have given a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, Lemonade presently has a consensus rating of "Hold" and an average target price of $30.50.

Lemonade Price Performance

Shares of Lemonade stock traded up $1.66 during trading on Friday, hitting $48.92. 3,351,636 shares of the company's stock traded hands, compared to its average volume of 2,789,657. The firm's fifty day moving average price is $41.10 and its 200 day moving average price is $35.27. Lemonade has a twelve month low of $14.90 and a twelve month high of $53.85. The company has a market cap of $3.61 billion, a PE ratio of -17.29 and a beta of 2.19.

Insider Buying and Selling at Lemonade

In other Lemonade news, insider John Sheldon Peters sold 6,543 shares of the business's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $45.00, for a total value of $294,435.00. Following the transaction, the insider directly owned 106,115 shares in the company, valued at $4,775,175. The trade was a 5.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Softbank Group Capital Ltd sold 500,000 shares of the business's stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $32.25, for a total transaction of $16,125,000.00. Following the completion of the transaction, the insider owned 7,498,723 shares in the company, valued at approximately $241,833,816.75. This trade represents a 6.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 905,571 shares of company stock worth $29,669,322 over the last ninety days. Corporate insiders own 14.70% of the company's stock.

Hedge Funds Weigh In On Lemonade

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LMND. Creative Planning lifted its position in shares of Lemonade by 74.1% during the second quarter. Creative Planning now owns 16,135 shares of the company's stock worth $707,000 after purchasing an additional 6,867 shares in the last quarter. SG Americas Securities LLC lifted its position in shares of Lemonade by 97.4% during the second quarter. SG Americas Securities LLC now owns 16,619 shares of the company's stock worth $728,000 after purchasing an additional 8,200 shares in the last quarter. Police & Firemen s Retirement System of New Jersey lifted its position in shares of Lemonade by 9.1% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 12,610 shares of the company's stock worth $552,000 after purchasing an additional 1,050 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Lemonade by 4.9% during the second quarter. Geode Capital Management LLC now owns 1,297,943 shares of the company's stock worth $56,871,000 after purchasing an additional 60,853 shares in the last quarter. Finally, SBI Securities Co. Ltd. lifted its position in shares of Lemonade by 31.8% during the second quarter. SBI Securities Co. Ltd. now owns 6,152 shares of the company's stock worth $270,000 after purchasing an additional 1,485 shares in the last quarter. 80.30% of the stock is currently owned by institutional investors and hedge funds.

About Lemonade

Lemonade, Inc provides various insurance products through various channels in the United States, Europe, and the United Kingdom. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property.