Lemonade (NYSE:LMND) Hits New 52-Week Low – Should You Sell?

Shares of Lemonade, Inc. (NYSE:LMND) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $45.76 and last traded at $45.8850, with a volume of 231836 shares traded. The stock had previously closed at $47.69.

Analysts Set New Price Targets

Several research firms recently commented on LMND. Wall Street Zen raised shares of Lemonade from a “sell” rating to a “hold” rating in a research report on Saturday. Cantor Fitzgerald reissued an “overweight” rating on shares of Lemonade in a research note on Tuesday, May 26th. Keefe, Bruyette & Woods upgraded Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 price target on the stock in a report on Thursday, July 30th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a research report on Friday, July 17th. Finally, TD Cowen reissued a “hold” rating on shares of Lemonade in a research report on Monday, June 8th. Four analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $64.50.

Lemonade Stock Performance

The stock has a market cap of $3.46 billion, a price-to-earnings ratio of -24.45 and a beta of 1.87. The company has a 50-day simple moving average of $53.87 and a two-hundred day simple moving average of $58.12.

Lemonade (NYSE:LMND) last released its quarterly earnings data on Tuesday, July 28th. The company reported ($0.56) EPS for the quarter, meeting the consensus estimate of ($0.56). Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%.The company had revenue of $294.40 million during the quarter, compared to the consensus estimate of $291.01 million. During the same quarter in the prior year, the firm posted ($0.60) EPS. The firm’s revenue for the quarter was up 79.4% compared to the same quarter last year. As a group, sell-side analysts predict that Lemonade, Inc. will post -1.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider John Peters sold 2,249 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $54.45, for a total value of $122,458.05. Following the sale, the insider directly owned 73,834 shares of the company’s stock, valued at approximately $4,020,261.30. This represents a 2.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 1,040 shares of Lemonade stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total value of $56,815.20. Following the transaction, the insider owned 186,533 shares of the company’s stock, valued at $10,190,297.79. The trade was a 0.55% 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. In the last quarter, insiders sold 18,592 shares of company stock valued at $1,076,326. Corporate insiders own 12.20% of the company’s stock.

Institutional Investors Weigh In On Lemonade

A number of large investors have recently added to or reduced their stakes in the business. Engineers Gate Manager LP acquired a new stake in Lemonade during the 2nd quarter valued at $1,229,000. Integrated Wealth Concepts LLC acquired a new position in shares of Lemonade in the second quarter valued at $128,000. NewEdge Advisors LLC raised its position in shares of Lemonade by 9.7% in the second quarter. NewEdge Advisors LLC now owns 7,041 shares of the company’s stock valued at $458,000 after purchasing an additional 621 shares during the period. Baird Financial Group Inc. bought a new position in shares of Lemonade in the second quarter valued at about $3,529,000. Finally, Arizona State Retirement System lifted its stake in shares of Lemonade by 3.7% during the 2nd quarter. Arizona State Retirement System now owns 17,915 shares of the company’s stock worth $1,165,000 after buying an additional 646 shares during the last quarter. Institutional investors own 80.30% of the company’s stock.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers digital insurance products through its website and mobile applications. Its platform uses automation, artificial intelligence and behavioral economics to streamline policy applications, claims processing and customer service.

The company provides renters, homeowners, pet, term life and automobile insurance. Product availability varies by location, and Lemonade distributes its offerings through regulated insurance entities and licensed partners.