Lemonade (NYSE:LMND) Stock Price Down 4.9% – Time to Sell?

Lemonade, Inc. (NYSE:LMND) shares fell 4.9% during mid-day trading on Friday . The stock traded as low as $57.54 and last traded at $58.6440. 943,438 shares were traded during trading, a decline of 63% from the average session volume of 2,584,130 shares. The stock had previously closed at $61.67.

Key Headlines Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q4 beat and top‑line momentum — Lemonade reported EPS of ($0.29) vs. consensus ($0.41) and revenue of $228.1M (+53% YoY); premium and customer growth accelerated, supporting the growth story. Lemonade Announces Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Upgraded outlook and path to profitability — Management raised FY2026 revenue guidance above Street expectations and reiterated a faster timeline to positive adjusted EBITDA and profitability, which underpinned the earlier rally. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Positive Sentiment: Product & tech tailwinds — Analysts and deep-dive coverage highlight accelerating growth drivers (AI-enabled pricing, auto insurance pilots, pet product and European expansion) that could sustain higher premium-per-customer over 2026. LMND Q4 Deep Dive: Accelerating Growth, Autonomous Car Insurance, and AI Investment Shape 2026 Outlook
• Neutral Sentiment: Market reaction and analyst stance — Coverage so far is constructive but not universally upgraded; MarketBeat and others see a fair‑value near $70, implying upside but also near‑term consolidation. Lemonade (LMND) Valuation Check After Encouraging Q4 Results And Outlook
• Neutral Sentiment: Earnings call detail — Transcripts provide context on underwriting actions, margin drivers and product roadmap; useful for modeling but no immediate analyst upgrades published. Lemonade, Inc. (LMND) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Underwriting clean‑up and ADR decline — Management noted a small decline in ADR due to non‑renewals of poorer policies; that improves portfolio quality but is a near‑term headwind to retained premium. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Negative Sentiment: Volatility, profit‑taking and short interest — The stock ran up sharply after the beat (large pre‑market gains and notable call buying). With ~high short interest and institutions trading actively, today’s pullback looks like profit‑taking and technical consolidation rather than a change in the company story. Lemonade (LMND) Stock Jumps 17% After Q4 Earnings Beat

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Truist Financial assumed coverage on shares of Lemonade in a research report on Tuesday, January 6th. They issued a “buy” rating and a $98.00 price objective for the company. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a research report on Thursday, January 22nd. Citizens Jmp set a $80.00 target price on Lemonade in a research report on Monday, November 24th. Citigroup reissued an “outperform” rating on shares of Lemonade in a report on Friday, January 16th. Finally, Piper Sandler set a $65.00 price target on shares of Lemonade in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $71.71.

Lemonade Stock Performance

The firm has a market cap of $4.20 billion, a P/E ratio of -23.48 and a beta of 2.03. The business’s fifty day moving average is $77.90 and its 200-day moving average is $66.08.

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

Insider Activity at Lemonade

In other news, COO Adina Eckstein sold 7,919 shares of Lemonade stock in a transaction on Wednesday, December 10th. The shares were sold at an average price of $81.15, for a total value of $642,626.85. Following the completion of the sale, the chief operating officer owned 188,391 shares in the company, valued at $15,287,929.65. The trade was a 4.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Daniel A. Schreiber sold 9,108 shares of the company’s stock in a transaction dated Friday, January 23rd. The shares were sold at an average price of $99.04, for a total transaction of $902,056.32. Following the transaction, the chief executive officer owned 1,514,426 shares in the company, valued at $149,988,751.04. This represents a 0.60% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 250,540 shares of company stock worth $22,007,574. Corporate insiders own 14.70% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Invesco Ltd. grew its stake in shares of Lemonade by 112.6% in the 4th quarter. Invesco Ltd. now owns 144,021 shares of the company’s stock worth $10,251,000 after acquiring an additional 76,265 shares in the last quarter. Rare Wolf Capital LLC purchased a new stake in shares of Lemonade during the 4th quarter valued at $983,000. Corient Private Wealth LLC raised its stake in shares of Lemonade by 14.6% during the 4th quarter. Corient Private Wealth LLC now owns 6,740 shares of the company’s stock worth $480,000 after purchasing an additional 859 shares during the period. Strive Financial Group LLC purchased a new position in shares of Lemonade in the 4th quarter worth about $38,000. Finally, Mackenzie Financial Corp bought a new position in Lemonade during the fourth quarter valued at about $250,000. 80.30% of the stock is owned by institutional investors.

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.