Morgan Stanley Forecasts Strong Price Appreciation for Lemonade (NYSE:LMND) Stock

Lemonade (NYSE:LMND) had its price objective increased by equities researchers at Morgan Stanley from $45.00 to $49.00 in a report released on Monday, Marketbeat reports. The firm currently has an “underweight” rating on the stock. Morgan Stanley’s target price points to a potential downside of 37.52% from the company’s previous close.

A number of other equities research analysts also recently weighed in on the company. Cantor Fitzgerald upgraded Lemonade to a “strong-buy” rating in a research report on Wednesday, August 13th. Wall Street Zen raised shares of Lemonade from a “sell” rating to a “hold” rating in a research note on Saturday, August 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Lemonade in a research report on Wednesday, October 8th. Piper Sandler decreased their price objective on shares of Lemonade from $60.00 to $55.00 and set a “neutral” rating for the company in a report on Friday, October 10th. Finally, BMO Capital Markets increased their price objective on shares of Lemonade from $23.00 to $42.00 and gave the company an “underperform” rating in a research report on Monday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $48.67.

Lemonade Price Performance

Shares of LMND traded up $3.41 during trading hours on Monday, hitting $78.43. The company’s stock had a trading volume of 2,074,977 shares, compared to its average volume of 2,420,792. The business has a 50 day simple moving average of $55.20 and a two-hundred day simple moving average of $45.68. The company has a market cap of $5.86 billion, a price-to-earnings ratio of -32.90 and a beta of 2.26. Lemonade has a 52-week low of $24.31 and a 52-week high of $81.90.

Lemonade (NYSE:LMND) last announced its quarterly earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share for the quarter, beating the consensus estimate of ($0.72) by $0.21. Lemonade had a negative return on equity of 31.86% and a negative net margin of 26.39%.The firm had revenue of $194.50 million for the quarter, compared to analysts’ expectations of $185.06 million. During the same period in the prior year, the business posted ($0.95) earnings per share. The company’s revenue was up 42.4% on a year-over-year basis. Lemonade has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts predict that Lemonade will post -3.03 earnings per share for the current year.

Insider Buying and Selling

In other Lemonade news, insider John Sheldon Peters sold 2,718 shares of the firm’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $50.34, for a total value of $136,824.12. Following the completion of the sale, the insider directly owned 102,397 shares in the company, valued at $5,154,664.98. This trade represents a 2.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Titleist Asset Management LLC increased its stake in shares of Lemonade by 4.1% in the third quarter. Titleist Asset Management LLC now owns 4,832 shares of the company’s stock worth $259,000 after acquiring an additional 189 shares during the period. Ameritas Investment Partners Inc. grew its position in shares of Lemonade by 4.0% in the second quarter. Ameritas Investment Partners Inc. now owns 5,683 shares of the company’s stock valued at $249,000 after purchasing an additional 220 shares in the last quarter. CWM LLC raised its holdings in shares of Lemonade by 9.9% during the 3rd quarter. CWM LLC now owns 2,518 shares of the company’s stock worth $135,000 after acquiring an additional 227 shares during the period. Migdal Insurance & Financial Holdings Ltd. boosted its holdings in Lemonade by 30.7% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,034 shares of the company’s stock valued at $45,000 after purchasing an additional 243 shares during the last quarter. Finally, Nisa Investment Advisors LLC increased its holdings in shares of Lemonade by 3.6% during the 1st quarter. Nisa Investment Advisors LLC now owns 11,020 shares of the company’s stock worth $346,000 after buying an additional 380 shares during the last quarter. 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.