Stock Traders Purchase Large Volume of Call Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the target of unusually large options trading on Tuesday. Investors purchased 22,566 call options on the stock. This represents an increase of approximately 27% compared to the average daily volume of 17,833 call options.

Wall Street Analyst Weigh In

LMND has been the topic of a number of research analyst reports. Citizens Jmp set a $80.00 target price on Lemonade in a research note on Monday, November 24th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a report on Thursday, January 22nd. Piper Sandler set a $65.00 price objective on Lemonade in a research report on Thursday, February 19th. Wolfe Research set a $44.00 price objective on Lemonade in a research note on Tuesday, February 24th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Lemonade in a research report on Friday, January 16th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Lemonade currently has an average rating of “Hold” and a consensus price target of $68.75.

Lemonade Trading Up 15.9%

Shares of LMND stock traded up $9.16 during trading hours on Tuesday, reaching $66.90. The stock had a trading volume of 5,823,866 shares, compared to its average volume of 2,743,303. The stock’s fifty day simple moving average is $70.03 and its 200 day simple moving average is $66.33. The firm has a market capitalization of $5.11 billion, a PE ratio of -29.60 and a beta of 2.12. Lemonade has a 12 month low of $24.31 and a 12 month high of $99.90.

Lemonade (NYSE:LMND) last posted its quarterly earnings data on Wednesday, February 18th. The company reported ($0.29) earnings per share for the quarter, beating the consensus estimate of ($0.41) by $0.12. Lemonade had a negative net margin of 22.43% and a negative return on equity of 31.19%. The business’s quarterly revenue was up 53.3% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.42) EPS. As a group, equities research analysts anticipate that Lemonade will post -3.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Daniel A. Schreiber sold 9,108 shares of the stock in a transaction dated Friday, January 23rd. The shares were sold at an average price of $99.04, for a total value of $902,056.32. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider John Sheldon Peters sold 3,571 shares of the business’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $52.50, for a total transaction of $187,477.50. Following the transaction, the insider owned 76,729 shares in the company, valued at approximately $4,028,272.50. This trade represents a 4.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 160,300 shares of company stock valued at $14,796,026 over the last three months. 12.50% of the stock is currently owned by insiders.

Institutional Trading of Lemonade

Several institutional investors have recently made changes to their positions in LMND. TD Waterhouse Canada Inc. increased its position in Lemonade by 3.4% during the 4th quarter. TD Waterhouse Canada Inc. now owns 3,671 shares of the company’s stock worth $261,000 after purchasing an additional 121 shares in the last quarter. Watershed Private Wealth LLC grew its stake in shares of Lemonade by 1.7% in the fourth quarter. Watershed Private Wealth LLC now owns 8,310 shares of the company’s stock valued at $592,000 after buying an additional 140 shares in the last quarter. AQR Capital Management LLC increased its holdings in Lemonade by 0.7% during the 4th quarter. AQR Capital Management LLC now owns 21,569 shares of the company’s stock worth $1,535,000 after purchasing an additional 159 shares during the last quarter. Titleist Asset Management LLC raised its position in shares of Lemonade by 4.1% during the 3rd quarter. Titleist Asset Management LLC now owns 4,832 shares of the company’s stock valued at $259,000 after acquiring an additional 189 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Lemonade by 2.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 8,431 shares of the company’s stock worth $600,000 after purchasing an additional 219 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company’s stock.

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.