Lemonade (NYSE:LMND) Shares Gap Down – Here’s Why

Lemonade, Inc. (NYSE:LMND) shares gapped down prior to trading on Friday . The stock had previously closed at $34.44, but opened at $32.61. Lemonade shares last traded at $32.63, with a volume of 417,850 shares traded.

Analyst Ratings Changes

A number of research firms recently issued reports on LMND. Piper Sandler upped their price target on shares of Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research note on Thursday, November 21st. Morgan Stanley raised shares of Lemonade from an “underweight” rating to an “equal weight” rating and increased their price target for the company from $23.00 to $42.00 in a report on Wednesday, November 20th. Jefferies Financial Group decreased their price objective on Lemonade from $15.00 to $14.00 and set an “underperform” rating on the stock in a research report on Wednesday, October 9th. Keefe, Bruyette & Woods cut Lemonade from a “market perform” rating to an “underperform” rating and lifted their target price for the stock from $18.00 to $21.00 in a report on Thursday, November 7th. Finally, JMP Securities increased their price target on Lemonade from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Friday, November 22nd. Three analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $30.43.

Lemonade Trading Down 7.0 %

The company has a market cap of $2.29 billion, a P/E ratio of -10.54 and a beta of 2.17. The company has a 50-day simple moving average of $39.50 and a 200 day simple moving average of $25.55.

Lemonade (NYSE:LMND) last posted its quarterly earnings results on Wednesday, October 30th. The company reported ($0.95) EPS for the quarter, topping analysts’ consensus estimates of ($1.02) by $0.07. Lemonade had a negative net margin of 43.51% and a negative return on equity of 32.85%. The firm had revenue of $136.60 million for the quarter, compared to analysts’ expectations of $129.10 million. During the same period in the prior year, the business posted ($0.88) earnings per share. The business’s revenue for the quarter was up 19.3% on a year-over-year basis. On average, equities analysts forecast that Lemonade, Inc. will post -3.04 EPS for the current fiscal year.

Insider Activity at Lemonade

In other news, major shareholder Softbank Group Capital Ltd sold 719,815 shares of the company’s stock in a transaction on Monday, December 16th. The stock was sold at an average price of $44.29, for a total transaction of $31,880,606.35. Following the transaction, the insider now directly owns 11,263,569 shares of the company’s stock, valued at approximately $498,863,471.01. This represents a 6.01 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Adina Eckstein sold 23,644 shares of the stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $40.00, for a total value of $945,760.00. Following the sale, the chief operating officer now owns 189,653 shares of the company’s stock, valued at approximately $7,586,120. This represents a 11.09 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 900,499 shares of company stock worth $39,114,376. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LMND. State Street Corp lifted its stake in shares of Lemonade by 1.2% during the third quarter. State Street Corp now owns 1,233,662 shares of the company’s stock worth $20,343,000 after buying an additional 14,028 shares during the period. Marshall Wace LLP acquired a new position in shares of Lemonade in the second quarter valued at about $14,181,000. Landscape Capital Management L.L.C. raised its stake in shares of Lemonade by 17.6% in the third quarter. Landscape Capital Management L.L.C. now owns 321,882 shares of the company’s stock worth $5,308,000 after purchasing an additional 48,260 shares during the last quarter. FMR LLC lifted its holdings in shares of Lemonade by 93.0% during the third quarter. FMR LLC now owns 318,321 shares of the company’s stock worth $5,249,000 after purchasing an additional 153,362 shares during the period. Finally, General Equity Holdings LP purchased a new stake in Lemonade in the second quarter valued at approximately $5,198,000. 80.30% of the stock is 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.