Lemonade (NYSE:LMND) Downgraded by Morgan Stanley to Underweight

Morgan Stanley lowered shares of Lemonade (NYSE:LMND) from an equal weight rating to an underweight rating in a report published on Tuesday morning, MarketBeat Ratings reports. Morgan Stanley currently has $24.00 target price on the stock, down from their prior target price of $35.00.

Separately, Piper Sandler decreased their price target on Lemonade from $44.00 to $34.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 26th. Four equities research analysts have rated the stock with a sell rating, one has issued a hold rating and one has issued a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $28.00.

Lemonade Stock Performance

Shares of LMND opened at $25.14 on Tuesday. Lemonade has a 1 year low of $14.03 and a 1 year high of $53.85. The stock has a market capitalization of $1.83 billion, a P/E ratio of -8.27 and a beta of 2.13. The company’s fifty day moving average is $33.96 and its two-hundred day moving average is $32.45.

Lemonade (NYSE:LMND) last posted its quarterly earnings results on Tuesday, February 25th. The company reported ($0.42) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.61) by $0.19. Lemonade had a negative net margin of 43.51% and a negative return on equity of 32.85%. The firm had revenue of $148.80 million during the quarter, compared to analysts’ expectations of $144.78 million. Sell-side analysts predict that Lemonade will post -3.03 EPS for the current year.

Insider Activity at Lemonade

In related news, major shareholder Softbank Group Capital Ltd sold 204,575 shares of the stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $37.08, for a total value of $7,585,641.00. Following the sale, the insider now directly owns 10,494,636 shares of the company’s stock, valued at approximately $389,141,102.88. This represents a 1.91 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider John Sheldon Peters sold 1,899 shares of Lemonade stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $33.79, for a total transaction of $64,167.21. Following the transaction, the insider now owns 87,609 shares of the company’s stock, valued at approximately $2,960,308.11. The trade was a 2.12 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 248,634 shares of company stock valued at $9,219,003 in the last ninety days. Corporate insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Lemonade

Hedge funds have recently bought and sold shares of the stock. Rhumbline Advisers boosted its stake in shares of Lemonade by 2.6% during the first quarter. Rhumbline Advisers now owns 77,706 shares of the company’s stock valued at $2,442,000 after acquiring an additional 2,001 shares during the last quarter. GAMMA Investing LLC boosted its stake in shares of Lemonade by 35,901.8% during the 1st quarter. GAMMA Investing LLC now owns 19,801 shares of the company’s stock worth $630,000 after purchasing an additional 19,746 shares during the last quarter. Jefferies Financial Group Inc. purchased a new stake in shares of Lemonade during the fourth quarter worth about $4,457,000. Voloridge Investment Management LLC acquired a new position in shares of Lemonade in the fourth quarter valued at approximately $21,310,000. Finally, Two Sigma Advisers LP purchased a new position in shares of Lemonade during the fourth quarter valued at approximately $15,412,000. Hedge funds and other institutional investors own 80.30% of the company’s stock.

Lemonade Company Profile

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.