Lemonade (NYSE:LMND) Shares Gap Down – What’s Next?

Lemonade, Inc. (NYSE:LMND)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $62.11, but opened at $49.21. Lemonade shares last traded at $47.7190, with a volume of 1,572,328 shares changing hands.

Analyst Ratings Changes

A number of research analysts have weighed in on LMND shares. Morgan Stanley reissued an “equal weight” rating and set a $75.00 target price on shares of Lemonade in a research report on Wednesday, July 8th. UBS Group set a $75.00 price target on Lemonade in a research report on Thursday, May 21st. Truist Financial dropped their price objective on Lemonade from $98.00 to $70.00 and set a “buy” rating on the stock in a research note on Wednesday, April 29th. Piper Sandler boosted their price objective on Lemonade from $62.00 to $75.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 15th. Finally, Keefe, Bruyette & Woods boosted their price objective on Lemonade from $44.00 to $48.00 and gave the stock an “underperform” rating in a research report on Wednesday, July 8th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Lemonade has a consensus rating of “Hold” and an average target price of $66.78.

Lemonade Price Performance

The firm’s 50 day moving average price is $61.61 and its 200-day moving average price is $64.10. The firm has a market cap of $3.63 billion, a price-to-earnings ratio of -25.03 and a beta of 1.79.

Lemonade (NYSE:LMND) last released its earnings results on Tuesday, July 28th. The company reported ($0.56) EPS for the quarter, meeting the consensus estimate of ($0.56). Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The firm had revenue of $294.40 million during the quarter, compared to analysts’ expectations of $291.01 million. During the same period in the prior year, the company earned ($0.60) EPS. The business’s quarterly revenue was up 79.4% compared to the same quarter last year. Analysts expect that Lemonade, Inc. will post -1.7 EPS for the current year.

Insider Activity

In other news, insider John Sheldon Peters sold 3,608 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $52.94, for a total transaction of $191,007.52. Following the transaction, the insider owned 81,386 shares in the company, valued at approximately $4,308,574.84. The trade was a 4.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 1,220 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total transaction of $64,867.40. Following the transaction, the insider directly owned 187,573 shares of the company’s stock, valued at $9,973,256.41. This represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 10,007 shares of company stock worth $620,201. Insiders own 12.20% of the company’s stock.

Hedge Funds Weigh In On Lemonade

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd raised its holdings in Lemonade by 8,080.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock valued at $29,000 after acquiring an additional 404 shares in the last quarter. Northwestern Mutual Wealth Management Co. acquired a new stake in shares of Lemonade during the 4th quarter worth approximately $33,000. Torren Management LLC acquired a new stake in shares of Lemonade during the 4th quarter worth approximately $35,000. NewEdge Advisors LLC bought a new stake in shares of Lemonade during the first quarter valued at approximately $35,000. Finally, Strive Financial Group LLC bought a new stake in shares of Lemonade during the fourth quarter valued at approximately $38,000. 80.30% of the stock is currently owned by institutional investors.

Lemonade Company Profile

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.