Lemonade Sees Unusually Large Options Volume (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the recipient of unusually large options trading on Thursday. Traders purchased 21,181 call options on the company. This represents an increase of 15% compared to the typical volume of 18,401 call options.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on LMND. Citigroup reaffirmed an “outperform” rating on shares of Lemonade in a research note on Friday, January 16th. Keefe, Bruyette & Woods upped their price target on Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a research report on Tuesday, November 25th. Weiss Ratings reissued a “sell (d-)” rating on shares of Lemonade in a research note on Thursday, January 22nd. Morgan Stanley set a $85.00 target price on Lemonade and gave the company an “equal weight” rating in a report on Tuesday, December 16th. Finally, Truist Financial began coverage on shares of Lemonade in a research report on Tuesday, January 6th. They set a “buy” rating and a $98.00 price objective on the stock. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $70.29.

Lemonade News Roundup

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q4 beat on both EPS and revenue: Lemonade reported a narrower loss (‑$0.29 vs. consensus ‑$0.41) and revenue of $228.1M (well above estimates), showing 53% YoY revenue growth — a key catalyst for the rally. Lemonade (LMND) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
• Positive Sentiment: Raised FY2026 and Q1 revenue guidance came in above Street consensus (FY revenue guide ~ $1.2B), and management now forecasts adjusted EBITDA turning positive by year‑end — a material forward-profitability signal. Lemonade Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Operational improvements: gross margin expansion, +37% FCF to ~$37M, growing gross earned premium and in‑force premium — evidence the business model is starting to convert growth into cash. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Positive Sentiment: High short interest amplified moves: heavy short positioning contributed to a sharp pre‑market jump as shorts faced cover risk. That dynamics can produce outsized intraday moves. Highly Shorted Stock Lemonade Jumps On Strong Quarter
• Neutral Sentiment: Company posted shareholder letter and hosted the earnings call (management color and guidance detail available on the webcast). Use the call transcript to judge cadence and forward assumptions. Lemonade Announces Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Coverage and headlines are broadly positive but analyst revisions were limited immediately; MarketBeat and other outlets highlight a longer runway but mixed near‑term technicals. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Negative Sentiment: Underwriting cleanup trimmed ADR (retained premium) as management non‑renewed some policies to improve portfolio quality — a near‑term headwind to premium retention. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Negative Sentiment: Company remains unprofitable on GAAP metrics (negative net margin and ROE); consensus still models multi‑year path to sustained profit — a risk if growth or loss‑ratio improvements slow. Lemonade (LMND) Reports Q4 Loss, Tops Revenue Estimates
• Negative Sentiment: High institutional ownership plus elevated short interest increase the potential for volatile swings and quick reversals; position sizing and stop discipline are advised. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead

Insider Transactions at Lemonade

In other Lemonade news, Director Debra Schwartz sold 4,200 shares of Lemonade stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $83.59, for a total transaction of $351,078.00. Following the transaction, the director directly owned 21,567 shares of the company’s stock, valued at approximately $1,802,785.53. This trade represents a 16.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Adina Eckstein sold 7,919 shares of the company’s stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $81.15, for a total transaction of $642,626.85. Following the completion of the sale, the chief operating officer directly owned 188,391 shares of the company’s stock, valued at $15,287,929.65. This trade represents a 4.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 250,540 shares of company stock worth $22,007,574. 14.70% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Lemonade

Large investors have recently modified their holdings of the stock. Bayforest Capital Ltd bought a new stake in Lemonade during the third quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of Lemonade by 8,080.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock worth $29,000 after acquiring an additional 404 shares during the last quarter. Strategic Advocates LLC bought a new stake in shares of Lemonade during the 3rd quarter valued at $33,000. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Lemonade in the 4th quarter worth $33,000. Finally, Torren Management LLC bought a new position in Lemonade in the 4th quarter worth $35,000. Hedge funds and other institutional investors own 80.30% of the company’s stock.

Lemonade Stock Performance

Shares of Lemonade stock traded down $3.29 during trading on Thursday, hitting $62.45. The company’s stock had a trading volume of 5,176,183 shares, compared to its average volume of 2,577,429. The company has a market capitalization of $4.67 billion, a PE ratio of -26.13 and a beta of 2.03. Lemonade has a 52 week low of $24.31 and a 52 week high of $99.90. The company has a fifty day simple moving average of $78.31 and a two-hundred day simple moving average of $66.11.

Lemonade (NYSE:LMND) last released its earnings results on Thursday, February 19th. The company reported ($0.29) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.41) by $0.12. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The firm had revenue of $228.10 million during the quarter, compared to analyst estimates of $218.07 million. During the same period last year, the business earned ($0.42) earnings per share. The business’s revenue was up 53.3% on a year-over-year basis. As a group, analysts predict that Lemonade will post -3.03 EPS for the current year.

Lemonade Company Profile

Lemonade, Inc (NYSE: LMND) is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company’s product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.