Lemonade (NYSE:LMND) Trading Down 6.5% – Time to Sell?

Lemonade, Inc. (NYSE:LMND)’s share price fell 6.5% on Friday . The stock traded as low as $76.10 and last traded at $74.5910. 227,836 shares were traded during mid-day trading, a decline of 91% from the average session volume of 2,426,638 shares. The stock had previously closed at $79.80.

Analyst Ratings Changes

Several equities analysts recently commented on the company. Citigroup restated a “market outperform” rating on shares of Lemonade in a research report on Monday, November 24th. Piper Sandler dropped their price target on Lemonade from $60.00 to $55.00 and set a “neutral” rating for the company in a research report on Friday, October 10th. JMP Securities set a $80.00 price objective on shares of Lemonade in a research report on Monday, November 24th. Keefe, Bruyette & Woods raised their target price on shares of Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a research note on Tuesday, November 25th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $63.14.

Lemonade Trading Down 6.3%

The stock has a fifty day moving average of $71.25 and a two-hundred day moving average of $56.30. The company has a market capitalization of $5.59 billion, a PE ratio of -31.28 and a beta of 2.13.

Lemonade (NYSE:LMND) last issued its earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.72) by $0.21. The business had revenue of $194.50 million during the quarter, compared to analyst estimates of $185.06 million. Lemonade had a negative return on equity of 31.86% and a negative net margin of 26.39%.Lemonade’s revenue for the quarter was up 42.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.95) earnings per share. Equities analysts forecast that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Activity at Lemonade

In related news, insider John Sheldon Peters sold 18,930 shares of Lemonade stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $72.77, for a total value of $1,377,536.10. Following the transaction, the insider owned 83,467 shares in the company, valued at $6,073,893.59. This trade represents a 18.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Adina Eckstein sold 41,557 shares of the company’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $78.95, for a total transaction of $3,280,925.15. Following the sale, the chief operating officer owned 204,229 shares of the company’s stock, valued at approximately $16,123,879.55. The trade was a 16.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 160,725 shares of company stock valued at $12,264,465. Insiders own 14.70% of the company’s stock.

Institutional Investors Weigh In On Lemonade

Several institutional investors have recently bought and sold shares of LMND. Vanguard Group Inc. increased its stake in Lemonade by 0.9% in the 3rd quarter. Vanguard Group Inc. now owns 6,279,141 shares of the company’s stock worth $336,122,000 after purchasing an additional 57,856 shares during the period. JPMorgan Chase & Co. grew its holdings in shares of Lemonade by 30.8% in the third quarter. JPMorgan Chase & Co. now owns 3,506,171 shares of the company’s stock worth $187,685,000 after purchasing an additional 825,522 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Lemonade by 4.9% in the second quarter. Geode Capital Management LLC now owns 1,297,943 shares of the company’s stock worth $56,871,000 after buying an additional 60,853 shares during the period. BIT Capital GmbH increased its stake in shares of Lemonade by 69.3% in the third quarter. BIT Capital GmbH now owns 1,254,345 shares of the company’s stock worth $67,145,000 after buying an additional 513,424 shares during the period. Finally, Bank of America Corp DE raised its holdings in Lemonade by 28.1% during the 2nd quarter. Bank of America Corp DE now owns 993,669 shares of the company’s stock valued at $43,533,000 after buying an additional 217,913 shares during the last quarter. 80.30% of the stock is currently owned by hedge funds and other 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.