Stock Traders Buy High Volume of Lemonade Call Options (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the target of some unusual options trading on Thursday. Stock traders purchased 21,181 call options on the stock. This is an increase of approximately 15% compared to the typical volume of 18,401 call options.

Lemonade Price Performance

NYSE:LMND opened at $61.56 on Friday. Lemonade has a 1-year low of $24.31 and a 1-year high of $99.90. The firm’s fifty day moving average price is $77.90 and its 200 day moving average price is $66.08. The firm has a market cap of $4.60 billion, a price-to-earnings ratio of -25.76 and a beta of 2.03.

Lemonade (NYSE:LMND) last announced its quarterly earnings data on Thursday, February 19th. The company reported ($0.29) EPS for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.12. The firm had revenue of $228.10 million during the quarter, compared to the consensus estimate of $218.07 million. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The firm’s revenue was up 53.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.42) earnings per share. As a group, analysts expect that Lemonade will post -3.03 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts recently commented on LMND shares. Piper Sandler set a $65.00 price target on shares of Lemonade in a report on Thursday. Morgan Stanley set a $85.00 price target on Lemonade and gave the stock an “equal weight” rating in a research report on Tuesday, December 16th. Keefe, Bruyette & Woods raised their target price on shares of Lemonade from $35.00 to $40.00 and gave the stock an “underperform” rating in a research note on Tuesday, November 25th. Citigroup reissued an “outperform” rating on shares of Lemonade in a report on Friday, January 16th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Lemonade in a research note on Thursday, January 22nd. Four 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.com, the company has an average rating of “Hold” and a consensus target price of $71.71.

Key Stories Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q4 beat on both top and bottom lines — revenue $228.1M (+53% YoY) and EPS -$0.29 vs. -$0.41 consensus; management highlighted wider gross margins and stronger free cash flow. Lemonade Announces Fourth-Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Company raised FY‑2026 revenue guidance (centered ~ $1.2B), pushed forward the timeline to adjusted‑EBITDA positivity and suggested full profitability could arrive sooner — a key catalyst for re-rating. Lemonade’s Sweet Results Refresh Market Appetite
• Positive Sentiment: Operating growth remains strong: sustained premium growth (ninth consecutive quarter), in‑force premium and customer counts expanded materially — supporting revenue momentum and LTV improvement. Lemonade (LMND) Stock Jumps 17% After Q4 Earnings Beat
• Neutral Sentiment: Unusual options activity — ~21,181 calls traded (≈15% above typical daily call volume) — which can amplify intraday moves but doesn’t change fundamentals in isolation.
• Negative Sentiment: Despite operational progress, Lemonade remains unprofitable (negative net margin and ROE); analysts still forecast negative EPS for the year, leaving valuation dependent on execution. Lemonade (LMND) Reports Q4 Loss, Tops Revenue Estimates
• Negative Sentiment: High short interest (~18%) and concentrated institutional ownership raise the stock’s volatility — positive beats can spark squeezes, but negative beats or missed execution can produce sharp pullbacks. Lemonade’s Sweet Results Refresh Market Appetite

Insider Activity

In other Lemonade news, CEO Daniel A. Schreiber sold 126,625 shares of Lemonade stock in a transaction on Thursday, January 22nd. The shares were sold at an average price of $94.74, for a total value of $11,996,452.50. Following the completion of the transaction, the chief executive officer directly owned 1,523,534 shares of the company’s stock, valued at $144,339,611.16. This trade represents a 7.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider John Sheldon Peters sold 10,000 shares of Lemonade stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $80.00, for a total transaction of $800,000.00. Following the sale, the insider owned 60,771 shares of the company’s stock, valued at $4,861,680. The trade was a 14.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 250,540 shares of company stock valued at $22,007,574. Company insiders own 14.70% of the company’s stock.

Institutional Investors Weigh In On Lemonade

A number of large investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd grew its position in shares of Lemonade by 8,080.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock valued at $29,000 after purchasing an additional 404 shares during the last quarter. Bayforest Capital Ltd purchased a new position in shares of Lemonade in the 3rd quarter worth about $25,000. Northwestern Mutual Wealth Management Co. acquired a new position in Lemonade during the fourth quarter valued at approximately $33,000. Torren Management LLC acquired a new position in shares of Lemonade during the 4th quarter valued at $35,000. Finally, Strive Financial Group LLC purchased a new stake in shares of Lemonade in the fourth quarter worth about $38,000. 80.30% of the stock is owned by institutional investors and hedge funds.

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.