Lemonade (NYSE:LMND) Sets New 12-Month Low Following Analyst Downgrade

Lemonade, Inc. (NYSE:LMND) hit a new 52-week low during mid-day trading on Friday after Piper Sandler lowered their price target on the stock from $51.00 to $47.00. Piper Sandler currently has a neutral rating on the stock. Lemonade traded as low as $39.31 and last traded at $39.5570, with a volume of 259,831 shares trading hands. The stock had previously closed at $41.48.

A number of other research firms have also recently commented on LMND. Morgan Stanley lowered their target price on Lemonade from $56.00 to $48.00 and set an “equal weight” rating on the stock in a research note on Tuesday, October 6th. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a report on Thursday, October 15th. Keefe, Bruyette & Woods upgraded shares of Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 price objective for the company in a report on Thursday, July 30th. Finally, Wall Street Zen raised shares of Lemonade from a “sell” rating to a “hold” rating in a research report on Saturday, September 19th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $63.00.

Insider Activity

In related news, insider Maya Prosor sold 1,040 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total value of $56,815.20. Following the sale, the insider owned 186,533 shares in the company, valued at approximately $10,190,297.79. This trade represents a 0.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Peters sold 2,249 shares of the firm’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 completion of the sale, the insider directly owned 73,834 shares in the company, valued at approximately $4,020,261.30. The trade was a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last quarter, insiders have sold 15,148 shares of company stock worth $804,250. Company insiders own 12.20% of the company’s stock.

More Lemonade News

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q3 revenue rose 72.8% year over year to $336.1 million, topping the $322.7 million consensus estimate. The loss of $0.56 per share was also narrower than the $0.58 loss analysts expected. Read More.
• Positive Sentiment: Lemonade forecast Q4 revenue of $342 million to $346 million, above the $341.1 million FactSet estimate, pointing to continued growth. Read More.
• Positive Sentiment: The company completed nationwide availability of renters insurance by launching in Minnesota, expanding the reach of its first product offered in all 50 states and Washington, D.C. Read More.
• Negative Sentiment: Despite the earnings and revenue beats, LMND shares came under pressure after the report. The quarterly loss per share widened from $0.51 a year earlier, while coverage highlighted rising expense headwinds and continued negative profitability as investor concerns. Read More. · Read More.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Ameritas Advisory Services LLC bought a new position in Lemonade in the second quarter valued at $30,000. State of Wyoming bought a new stake in Lemonade during the first quarter worth about $42,000. Integrated Wealth Concepts LLC bought a new stake in Lemonade during the second quarter worth about $128,000. Sterling Capital Management LLC boosted its holdings in shares of Lemonade by 838.3% in the 3rd quarter. Sterling Capital Management LLC now owns 2,374 shares of the company’s stock worth $107,000 after purchasing an additional 2,121 shares in the last quarter. Finally, Nykredit A S purchased a new position in shares of Lemonade in the 2nd quarter worth about $156,000. 80.30% of the stock is currently owned by hedge funds and other institutional investors.

Lemonade Trading Down 4.3%

The stock has a market capitalization of $3.07 billion, a PE ratio of -21.65 and a beta of 1.98. The business has a fifty day moving average price of $46.94 and a 200-day moving average price of $57.89.

Lemonade (NYSE:LMND) last announced its quarterly earnings data on Thursday, November 5th. The company reported ($0.56) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.58) by $0.02. The company had revenue of $336.10 million for the quarter, compared to analysts’ expectations of $322.74 million. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%. Lemonade’s revenue for the quarter was up 72.8% compared to the same quarter last year. During the same period last year, the firm posted ($0.51) EPS. On average, equities analysts anticipate that Lemonade, Inc. will post -1.83 earnings per share for the current fiscal year.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers insurance products through digital platforms, including its mobile application and website. The company uses artificial intelligence, automation and data analytics to support policy purchasing, customer service and claims processing.

Lemonade’s product offerings include renters, homeowners, car, pet and term life insurance. Coverage and product availability vary by jurisdiction, and some policies are provided through regulated insurance subsidiaries or underwritten in partnership with other insurers.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade serves customers in the United States and selected European markets, including Germany, the Netherlands, France and the United Kingdom.