Stock Traders Purchase High Volume of Call Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the target of some unusual options trading on Monday. Stock traders acquired 17,881 call options on the stock. This is an increase of 53% compared to the average volume of 11,689 call options.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on LMND. Keefe, Bruyette & Woods dropped their price target on shares of Lemonade from $25.00 to $22.00 and set an “underperform” rating for the company in a research note on Tuesday, April 22nd. Morgan Stanley lowered shares of Lemonade from an “equal weight” rating to an “underweight” rating and decreased their price objective for the stock from $35.00 to $24.00 in a report on Tuesday, April 8th. Finally, Piper Sandler cut their target price on shares of Lemonade from $44.00 to $34.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 26th. Four investment analysts have rated the stock with a sell rating, one has assigned a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat, Lemonade currently has a consensus rating of “Hold” and an average price target of $28.17.

Lemonade Price Performance

Shares of LMND stock traded up $1.48 on Monday, hitting $45.79. 3,874,886 shares of the stock traded hands, compared to its average volume of 2,057,331. The company’s fifty day moving average is $32.93 and its 200 day moving average is $34.32. Lemonade has a 1-year low of $14.90 and a 1-year high of $53.85. The company has a market capitalization of $3.36 billion, a PE ratio of -15.05 and a beta of 2.14.

Lemonade (NYSE:LMND) last issued its earnings results on Wednesday, May 7th. The company reported ($0.86) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.84) by ($0.02). Lemonade had a negative return on equity of 36.72% and a negative net margin of 38.90%. During the same quarter last year, the firm earned ($0.67) EPS. Lemonade’s quarterly revenue was up 27.0% on a year-over-year basis. As a group, equities research analysts expect that Lemonade will post -3.03 EPS for the current year.

Insider Activity

In related news, major shareholder Softbank Group Capital Ltd sold 422,177 shares of the firm’s stock in a transaction on Friday, May 2nd. The shares were sold at an average price of $30.17, for a total transaction of $12,737,080.09. Following the completion of the sale, the insider now directly owns 10,015,984 shares of the company’s stock, valued at approximately $302,182,237.28. This trade represents a 4.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider John Sheldon Peters sold 1,494 shares of the business’s stock in a transaction on Tuesday, June 3rd. The stock was sold at an average price of $35.25, for a total transaction of $52,663.50. Following the completion of the transaction, the insider now owns 106,115 shares in the company, valued at $3,740,553.75. This represents a 1.39% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,540,162 shares of company stock valued at $79,825,724 in the last three months. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Lemonade

Institutional investors and hedge funds have recently bought and sold shares of the business. Rhumbline Advisers lifted its stake in Lemonade by 2.6% in the first quarter. Rhumbline Advisers now owns 77,706 shares of the company’s stock valued at $2,442,000 after buying an additional 2,001 shares during the last quarter. Caxton Associates LLP acquired a new stake in shares of Lemonade in the 1st quarter worth about $1,455,000. Goldman Sachs Group Inc. lifted its position in Lemonade by 7.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company’s stock valued at $19,244,000 after purchasing an additional 41,759 shares during the last quarter. Dynamic Technology Lab Private Ltd acquired a new position in Lemonade during the 1st quarter valued at about $638,000. Finally, NewEdge Advisors LLC bought a new position in Lemonade in the 1st quarter worth about $35,000. Institutional investors and hedge funds 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.