Keefe, Bruyette & Woods Upgrades Lemonade (NYSE:LMND) to Market Perform

Lemonade (NYSE:LMND) was upgraded by analysts at Keefe, Bruyette & Woods from an “underperform” rating to a “market perform” rating in a report released on Thursday. The firm presently has a $48.00 target price on the stock. Keefe, Bruyette & Woods’ target price suggests a potential upside of 1.71% from the company’s current price.

A number of other brokerages have also weighed in on LMND. Piper Sandler lifted their price objective on Lemonade from $62.00 to $75.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Morgan Stanley reiterated an “equal weight” rating and set a $75.00 price objective on shares of Lemonade in a research note on Wednesday, July 8th. Cantor Fitzgerald reissued an “overweight” rating on shares of Lemonade in a report on Tuesday, May 26th. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a research report on Friday, July 17th. Finally, Truist Financial lowered their price target on Lemonade from $98.00 to $70.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Four equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $66.78.

Lemonade Stock Performance

NYSE:LMND opened at $47.19 on Thursday. The stock has a market capitalization of $3.63 billion, a PE ratio of -25.24 and a beta of 1.79. Lemonade has a fifty-two week low of $35.70 and a fifty-two week high of $99.90. The company has a fifty day moving average of $61.41 and a two-hundred day moving average of $63.86.

Lemonade (NYSE:LMND) last announced its earnings results on Wednesday, July 29th. The company reported ($0.56) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.56). The business had revenue of $294.40 million for the quarter, compared to analyst estimates of $291.01 million. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The company’s revenue for the quarter was up 79.4% compared to the same quarter last year. During the same quarter last year, the business earned ($0.60) earnings per share. Research analysts forecast that Lemonade will post -1.7 earnings per share for the current year.

Insiders Place Their Bets

In other Lemonade news, insider John Sheldon Peters sold 3,608 shares of the firm’s stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $52.94, for a total value of $191,007.52. Following the completion of the sale, the insider directly owned 81,386 shares of the company’s stock, valued at $4,308,574.84. This trade represents a 4.25% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Maya Prosor sold 1,220 shares of Lemonade stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the transaction, the insider owned 187,573 shares in the company, valued at approximately $9,973,256.41. This represents a 0.65% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 10,007 shares of company stock worth $620,201 in the last three months. 12.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Lemonade

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its position in shares of Lemonade by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 6,305,453 shares of the company’s stock valued at $448,822,000 after buying an additional 26,312 shares during the period. Clear Street Group Inc. acquired a new stake in Lemonade during the fourth quarter worth $2,448,000. Lido Advisors LLC purchased a new stake in Lemonade in the first quarter valued at $1,318,000. Pursue Wealth Partners LLC acquired a new position in shares of Lemonade in the 4th quarter valued at $2,814,000. Finally, Halter Ferguson Financial Inc. lifted its stake in shares of Lemonade by 4.3% in the 4th quarter. Halter Ferguson Financial Inc. now owns 600,863 shares of the company’s stock valued at $42,769,000 after purchasing an additional 24,957 shares during the last quarter. 80.30% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Second-quarter revenue reached $294.4 million, up 79.4% year over year and ahead of analysts’ roughly $291 million estimate. Adjusted EPS of negative $0.56 matched consensus, while management’s third-quarter revenue forecast of $323 million to $326 million exceeded the $320.5 million consensus estimate. Lemonade Q2 Earnings Snapshot
• Positive Sentiment: Management highlighted a favorable shift in its reinsurance structure, continued progress toward profitability, and expanded use of artificial intelligence as potential long-term drivers of margins and operating leverage. Lemonade Favorable Reinsurance Shift
• Neutral Sentiment: Lemonade named Nick Stead, its senior vice president of finance, to succeed CFO Tim Bixby at year-end. Bixby is expected to join the company’s board, which could preserve continuity, although investors may still scrutinize the leadership change during the company’s path to profitability. Lemonade CFO Transition
• Negative Sentiment: The company remains unprofitable, reporting a $0.56 per-share loss, a negative net margin of 16.44%, and negative return on equity. Revenue growth was strong, but investors appear to want clearer evidence that the growth is translating into faster earnings improvement. Lemonade Q2 Key Metrics
• Negative Sentiment: Full-year revenue guidance of approximately $1.2 billion was generally in line with consensus rather than a major upward surprise. With LMND trading well below its 12-month high but still carrying a growth-stock valuation, the lack of a stronger outlook likely contributed to selling pressure. Lemonade Q2 Guidance and Valuation

About Lemonade

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.