Investors Purchase High Volume of Call Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw some unusual options trading activity on Thursday. Investors bought 31,222 call options on the company. This represents an increase of 69% compared to the typical daily volume of 18,479 call options.

Lemonade Stock Up 13.1%

LMND opened at $96.57 on Friday. The business’s fifty day simple moving average is $77.37 and its 200 day simple moving average is $61.09. Lemonade has a 52 week low of $24.31 and a 52 week high of $99.90. The stock has a market cap of $7.22 billion, a PE ratio of -40.41 and a beta of 1.98.

Lemonade (NYSE:LMND) last issued its quarterly 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 firm 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%.The company’s revenue was up 42.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.95) earnings per share. As a group, equities analysts anticipate that Lemonade will post -3.03 earnings per share for the current year.

Analysts Set New Price Targets

LMND has been the topic of several analyst reports. JMP Securities set a $80.00 price target on Lemonade in a research report on Monday, November 24th. Keefe, Bruyette & Woods upped their target price on shares of Lemonade from $35.00 to $40.00 and gave the stock an “underperform” rating in a report on Tuesday, November 25th. Piper Sandler lowered their target price on shares of Lemonade from $60.00 to $55.00 and set a “neutral” rating on the stock in a research note on Friday, October 10th. Cantor Fitzgerald boosted their price target on shares of Lemonade from $85.00 to $92.00 and gave the company an “overweight” rating in a research report on Wednesday, January 14th. Finally, Morgan Stanley set a $85.00 price target on shares of Lemonade and gave the stock an “equal weight” rating in a report on Tuesday, December 16th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Lemonade presently has a consensus rating of “Hold” and a consensus target price of $71.50.

Key Lemonade News

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Lemonade announced Lemonade Autonomous Car Insurance with ~50% per-mile discounts for Tesla FSD miles, positioning the company to win customers directly inside the Tesla ecosystem and lower customer-acquisition costs. Lemonade Unveils Autonomous Car Insurance
• Positive Sentiment: Coverage frames the Tesla tie-up as a potential industry-rewrite for auto-insurance pricing and a validation of Lemonade’s tech-first model, helping push the stock to multi‑week/52‑week highs. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced
• Positive Sentiment: Analyst and industry pieces emphasize the strategic importance of direct data integration (real-time FSD usage) for risk pricing — a structural advantage over legacy carriers if FSD proves safer. How Lemonade & Tesla are Disrupting the Insurance Business
• Positive Sentiment: Unusually large options activity: investors bought ~31,222 call contracts (≈69% above average call volume), signaling short‑term bullish positioning and added upside momentum. (No external link)
• Positive Sentiment: Company fundamentals cited in coverage: Q3 ’25 revenue growth, lower gross loss ratio (GLR ≈62%) and consecutive positive adjusted free cash flow quarters — financial improvements that make a discounted FSD offering feasible without immediately hurting margins. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced
• Neutral Sentiment: Public endorsements and press (including Elon Musk commentary) amplify visibility and adoption potential but don’t change regulatory or claims outcomes. Elon Musk backs Lemonade halving insurance rates
• Negative Sentiment: Execution and regulatory risk: rollout is initially limited (Arizona, Oregon) and scaling nationwide requires regulatory approvals and insurer underwriting validation — any adverse FSD safety data would raise claims costs and hurt margins. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced
• Negative Sentiment: High short interest (~20% of float) increases volatility: good news can trigger squeezes but also sharp reversals if execution falters or macro sentiment shifts. (No external link)

Insider Buying and Selling

In related news, COO Adina Eckstein sold 41,557 shares of the business’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $78.95, for a total transaction of $3,280,925.15. Following the sale, the chief operating officer directly owned 204,229 shares in the company, valued at approximately $16,123,879.55. The trade was a 16.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Debra Schwartz sold 4,200 shares of the stock in a transaction dated Thursday, December 11th. The stock was sold at an average price of $83.59, for a total value of $351,078.00. Following the sale, the director directly owned 21,567 shares in the company, valued at $1,802,785.53. This trade represents a 16.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 170,725 shares of company stock valued at $13,064,465. Company insiders own 14.70% of the company’s stock.

Hedge Funds Weigh In On Lemonade

Several institutional investors and hedge funds have recently made changes to their positions in LMND. Bayforest Capital Ltd purchased a new stake in Lemonade during the third quarter valued at about $25,000. Strategic Advocates LLC bought a new stake in shares of Lemonade in the 3rd quarter valued at about $33,000. NewEdge Advisors LLC purchased a new stake in Lemonade during the 1st quarter valued at about $35,000. Estabrook Capital Management bought a new position in Lemonade during the 2nd quarter worth approximately $44,000. Finally, Migdal Insurance & Financial Holdings Ltd. increased its stake in Lemonade by 30.7% in the 2nd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 1,034 shares of the company’s stock worth $45,000 after purchasing an additional 243 shares during the period. Institutional investors own 80.30% of the company’s stock.

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.