Lemonade (NYSE:LMND) Sets New 12-Month High – Here’s Why

Shares of Lemonade, Inc. (NYSE:LMND) reached a new 52-week high during trading on Thursday . The stock traded as high as $95.10 and last traded at $97.2810, with a volume of 2333000 shares changing hands. The stock had previously closed at $85.36.

More Lemonade News

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Lemonade announced “Lemonade Autonomous Car” insurance offering a roughly 50% per‑mile discount when Tesla Full Self‑Driving (FSD) is engaged — a product launch that validates Lemonade’s tech-first model and is being viewed as a potential growth accelerator. Lemonade Unveils Autonomous Car Insurance, Slashing Rates for Tesla FSD Miles by 50%
• Positive Sentiment: Market commentary highlights that the Tesla tie-up could rewrite auto-insurance pricing by tying premiums to actual FSD usage, and cites improved margins, a lower gross loss ratio and consecutive positive adjusted free cash flow as reasons the company can afford aggressive pricing. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced
• Positive Sentiment: Unusually large call‑option activity (31,222 calls, ~+69% vs. avg.) indicates speculative/hedged bullish positioning that can amplify short‑term upside and volume. (Internal trading report)
• Neutral Sentiment: Valuation-focused analysis notes strong multi‑period gains and a recent pullback; investors should weigh growth potential against elevated multiples and ongoing negative EPS guidance. Assessing Lemonade (LMND) Valuation After Strong Multi‑Period Gains And A Recent Share Price Pullback
• Negative Sentiment: Execution and regulatory risk: rollout is currently limited (Arizona, Oregon); scaling nationwide requires state approvals and could slow revenue realization. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced
• Negative Sentiment: Product economics hinge on FSD proving safer than human drivers—worse-than-expected FSD accident rates or higher claims could reverse margin gains; high short interest (~20% of float) also raises volatility and downside if fundamentals disappoint. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a research report on Wednesday, October 8th. JMP Securities set a $80.00 price target on Lemonade in a research note on Monday, November 24th. Keefe, Bruyette & Woods upped their price objective on Lemonade from $35.00 to $40.00 and gave the stock an “underperform” rating in a research report on Tuesday, November 25th. Piper Sandler reduced their price objective on Lemonade from $60.00 to $55.00 and set a “neutral” rating on the stock in a research note on Friday, October 10th. Finally, Truist Financial initiated coverage on Lemonade in a research note on Tuesday, January 6th. They set a “buy” rating and a $98.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $71.50.

Lemonade Stock Performance

The firm has a market cap of $7.18 billion, a price-to-earnings ratio of -40.19 and a beta of 1.98. The business has a fifty day simple moving average of $76.84 and a 200-day simple moving average of $60.84.

Lemonade (NYSE:LMND) last released its quarterly earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share for the quarter, topping the consensus estimate of ($0.72) by $0.21. Lemonade had a negative return on equity of 31.86% and a negative net margin of 26.39%.The company had revenue of $194.50 million for the quarter, compared to analysts’ expectations of $185.06 million. During the same period in the previous year, the business posted ($0.95) earnings per share. The business’s quarterly revenue was up 42.4% compared to the same quarter last year. On average, equities analysts anticipate that Lemonade, Inc. will post -3.03 earnings per share for the current year.

Insider Buying and Selling

In other news, insider John Sheldon Peters sold 10,000 shares of the stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $80.00, for a total value of $800,000.00. Following the completion of the sale, the insider owned 60,771 shares of the company’s stock, valued at approximately $4,861,680. This represents a 14.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Debra Schwartz sold 4,200 shares of the firm’s 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 transaction, the director owned 21,567 shares of the company’s stock, valued at $1,802,785.53. This trade represents a 16.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 170,725 shares of company stock valued at $13,064,465 over the last 90 days. 14.70% of the stock is owned by insiders.

Institutional Investors Weigh In On Lemonade

Large investors have recently added to or reduced their stakes in the business. Kraematon Investment Advisors Inc. bought a new position in shares of Lemonade during the 4th quarter worth approximately $312,000. Leo Wealth LLC bought a new position in Lemonade during the fourth quarter worth $2,699,000. Fearless Solutions LLC dba Best Invest grew its holdings in Lemonade by 10.5% in the fourth quarter. Fearless Solutions LLC dba Best Invest now owns 4,200 shares of the company’s stock worth $299,000 after purchasing an additional 400 shares during the period. Udine Wealth Management Inc. increased its stake in Lemonade by 2.2% in the fourth quarter. Udine Wealth Management Inc. now owns 33,930 shares of the company’s stock valued at $2,415,000 after purchasing an additional 717 shares in the last quarter. Finally, Genesis Financial Group LLC bought a new position in shares of Lemonade during the 4th quarter worth about $890,000. Institutional investors and hedge funds own 80.30% of the company’s stock.

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.