Lemonade (NYSE:LMND) Shares Gap Up After Analyst Upgrade

Lemonade, Inc. (NYSE:LMND) shares gapped up before the market opened on Tuesday after Morgan Stanley upgraded the stock from an equal weight rating to an overweight rating. The stock had previously closed at $57.74, but opened at $62.43. Morgan Stanley now has a $85.00 price target on the stock, up from their previous price target of $80.00. Lemonade shares last traded at $66.0230, with a volume of 1,473,547 shares traded.

Other equities research analysts have also recently issued reports about the stock. Keefe, Bruyette & Woods boosted their price target on shares of Lemonade from $40.00 to $44.00 and gave the stock an “underperform” rating in a research report on Tuesday, February 24th. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a report on Thursday, January 22nd. Piper Sandler set a $65.00 target price on Lemonade in a research report on Thursday, February 19th. Truist Financial assumed coverage on Lemonade in a research report on Tuesday, January 6th. They set a “buy” rating and a $98.00 price target for the company. Finally, Citizens Jmp set a $80.00 price target on Lemonade in a research note on Monday, November 24th. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Lemonade currently has an average rating of “Hold” and an average target price of $68.75.

Insider Transactions at Lemonade

In related news, insider John Sheldon Peters sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $80.00, for a total value of $800,000.00. Following the completion of the sale, the insider directly owned 60,771 shares in the company, valued at approximately $4,861,680. This trade represents a 14.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Daniel A. Schreiber sold 126,625 shares of Lemonade stock in a transaction dated Thursday, January 22nd. The stock was sold at an average price of $94.74, for a total value of $11,996,452.50. Following the transaction, the chief executive officer owned 1,523,534 shares of the company’s stock, valued at $144,339,611.16. The trade was a 7.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 160,300 shares of company stock valued at $14,796,026. Insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

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

Lemonade Trading Up 14.9%

The business’s 50 day moving average price is $70.03 and its 200-day moving average price is $66.33. The company has a market cap of $5.07 billion, a price-to-earnings ratio of -29.07 and a beta of 2.12.

Lemonade (NYSE:LMND) last announced its quarterly earnings results on Wednesday, February 18th. The company reported ($0.29) EPS for the quarter, beating analysts’ consensus estimates 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 revenue for the quarter was up 53.3% compared to the same quarter last year. During the same period last year, the company posted ($0.42) EPS. Equities research analysts forecast that Lemonade, Inc. will post -3.03 EPS for the current fiscal year.

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.