Lemonade (NYSE:LMND) Shares Gap Up Following Strong Earnings

Lemonade, Inc. (NYSE:LMND) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $65.73, but opened at $74.00. Lemonade shares last traded at $61.8190, with a volume of 2,920,812 shares traded.

The company reported ($0.29) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.12. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The firm had revenue of $228.10 million for the quarter, compared to the consensus estimate of $218.07 million. During the same period last year, the firm posted ($0.42) earnings per share. The business’s revenue was up 53.3% compared to the same quarter last year.

Lemonade News Roundup

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

Analyst Ratings Changes

A number of equities research analysts have issued reports on LMND shares. Citigroup reissued an “outperform” rating on shares of Lemonade in a report on Friday, January 16th. Truist Financial assumed coverage on Lemonade in a research report on Tuesday, January 6th. They issued a “buy” rating and a $98.00 price objective on the stock. Keefe, Bruyette & Woods upped their target price on Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a report on Tuesday, November 25th. Morgan Stanley set a $85.00 price target on Lemonade and gave the stock an “equal weight” rating in a research note on Tuesday, December 16th. Finally, Piper Sandler set a $65.00 price objective on shares of Lemonade in a research report on Thursday. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $71.71.

Insider Buying and Selling

In other news, Director Debra Schwartz sold 4,200 shares of the company’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $83.59, for a total transaction of $351,078.00. Following the completion of the sale, the director owned 21,567 shares of the company’s stock, valued at $1,802,785.53. This represents a 16.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Daniel A. Schreiber sold 126,625 shares of the company’s stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $94.74, for a total transaction 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 represents a 7.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 250,540 shares of company stock valued at $22,007,574 over the last ninety days. Insiders own 14.70% of the company’s stock.

Institutional Trading of Lemonade

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in shares of Lemonade by 107.3% in the 1st quarter. AQR Capital Management LLC now owns 30,490 shares of the company’s stock valued at $958,000 after purchasing an additional 15,779 shares in the last quarter. Millennium Management LLC raised its stake in shares of Lemonade by 255.2% in the 1st quarter. Millennium Management LLC now owns 329,934 shares of the company’s stock valued at $10,370,000 after acquiring an additional 237,044 shares during the period. NewEdge Advisors LLC acquired a new stake in Lemonade in the first quarter valued at approximately $35,000. Goldman Sachs Group Inc. grew its position in Lemonade by 7.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 612,292 shares of the company’s stock worth $19,244,000 after purchasing an additional 41,759 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Lemonade during the 2nd quarter worth approximately $539,000. Hedge funds and other institutional investors own 80.30% of the company’s stock.

Lemonade Price Performance

The company has a market capitalization of $4.60 billion, a PE ratio of -25.76 and a beta of 2.03. The stock has a 50-day simple moving average of $77.90 and a 200 day simple moving average of $66.08.

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.