Lemonade (NYSE:LMND) Trading 7.7% Higher – Still a Buy?

Lemonade, Inc. (NYSE:LMND) shares were up 7.7% on Monday . The company traded as high as $52.43 and last traded at $52.0160. Approximately 282,238 shares changed hands during trading, a decline of 86% from the average session volume of 2,024,178 shares. The stock had previously closed at $48.31.

Wall Street Analyst Weigh In

A number of analysts have commented on the stock. Citizens Jmp cut their price target on shares of Lemonade from $85.00 to $80.00 and set a “market outperform” rating for the company in a research note on Thursday, April 30th. UBS Group set a $75.00 target price on shares of Lemonade in a report on Thursday, May 21st. TD Cowen reiterated a “hold” rating on shares of Lemonade in a research note on Monday, June 8th. Piper Sandler reduced their price target on Lemonade from $75.00 to $51.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. 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 report on Wednesday, April 29th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $64.11.

Lemonade Price Performance

The firm has a 50-day moving average price of $60.94 and a 200 day moving average price of $62.99. The company has a market cap of $4.17 billion, a price-to-earnings ratio of -29.67 and a beta of 1.84.

Lemonade (NYSE:LMND) last released its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share for the quarter, hitting the consensus estimate of ($0.56). The business had revenue of $294.40 million during the quarter, compared to analysts’ expectations of $291.01 million. Lemonade had a negative return on equity of 26.48% and a negative net margin of 14.19%.The firm’s revenue for the quarter was up 79.4% compared to the same quarter last year. During the same period last year, the firm posted ($0.60) EPS. On average, equities analysts anticipate that Lemonade, Inc. will post -1.75 EPS for the current fiscal year.

Insider Buying and Selling at Lemonade

In other news, 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 transaction of $64,867.40. Following the completion of the sale, the insider owned 187,573 shares of the company’s stock, valued at approximately $9,973,256.41. This trade represents a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 3,608 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $52.94, for a total transaction of $191,007.52. Following the completion of the sale, the insider directly owned 81,386 shares of the company’s stock, valued at approximately $4,308,574.84. The trade was a 4.25% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold a total of 10,007 shares of company stock worth $620,201 in the last quarter. Company insiders own 12.20% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LMND. Caitong International Asset Management Co. Ltd raised its position in shares of Lemonade by 8,080.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock valued at $29,000 after buying an additional 404 shares in the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in Lemonade during the fourth quarter worth approximately $33,000. Torren Management LLC acquired a new stake in Lemonade during the fourth quarter worth approximately $35,000. Strive Financial Group LLC acquired a new stake in Lemonade during the fourth quarter worth approximately $38,000. Finally, State of Wyoming bought a new position in Lemonade during the 1st quarter worth $42,000. Institutional investors and hedge funds own 80.30% of the company’s stock.

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.