Lemonade (NYSE:LMND) Sets New 52-Week Low – Time to Sell?

Lemonade, Inc. (NYSE:LMND)’s share price hit a new 52-week low during trading on Wednesday. The company traded as low as $42.70 and last traded at $43.3210, with a volume of 232,690 shares changing hands. The stock had previously closed at $44.71.

Analyst Upgrades and Downgrades

Several brokerages recently commented on LMND. Keefe, Bruyette & Woods raised Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 price target for the company in a research report on Thursday, July 30th. Wall Street Zen upgraded shares of Lemonade from a “sell” rating to a “hold” rating in a research report on Saturday, September 19th. Morgan Stanley reduced their price objective on Lemonade from $56.00 to $48.00 and set an “equal weight” rating for the company in a report on Tuesday, October 6th. Piper Sandler decreased their target price on Lemonade from $75.00 to $51.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $63.50.

Lemonade Stock Performance

The stock has a market cap of $3.44 billion, a P/E ratio of -24.27 and a beta of 1.87. The stock’s fifty day simple moving average is $49.69 and its 200-day simple moving average is $56.60.

Lemonade (NYSE:LMND) last announced its earnings results on Tuesday, July 28th. The company reported ($0.56) EPS for the quarter, hitting the consensus estimate of ($0.56). Lemonade had a negative net margin of 14.19% and a negative return on equity of 26.78%. The company had revenue of $294.40 million for the quarter, compared to analysts’ expectations of $291.01 million. During the same period last year, the firm earned ($0.60) earnings per share. The business’s revenue for the quarter was up 79.4% on a year-over-year basis. As a group, equities research analysts forecast that Lemonade, Inc. will post -1.84 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider John Peters sold 2,249 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $54.45, for a total value of $122,458.05. Following the completion of the transaction, the insider directly owned 73,834 shares in the company, valued at approximately $4,020,261.30. The trade was a 2.96% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Maya Prosor sold 1,040 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total transaction of $56,815.20. Following the sale, the insider directly owned 186,533 shares of the company’s stock, valued at approximately $10,190,297.79. This trade represents a 0.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 15,148 shares of company stock valued at $804,250. Corporate insiders own 12.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Lemonade during the second quarter worth $393,408,000. Bank of America Corp DE increased its stake in shares of Lemonade by 52.1% in the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company’s stock valued at $22,591,000 after purchasing an additional 123,484 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Lemonade in the 2nd quarter valued at $13,861,000. Canada Pension Plan Investment Board acquired a new position in shares of Lemonade during the 2nd quarter worth $13,550,000. Finally, Man Group plc acquired a new position in shares of Lemonade during the 2nd quarter worth $8,864,000. 80.30% of the stock is owned by institutional investors.

Lemonade Company Profile

Lemonade, Inc is a technology-driven insurance company that offers insurance products through mobile applications and online platforms. Its business uses artificial intelligence, automation and behavioral economics to simplify policy purchases, claims processing and customer service.

The company provides renters, homeowners, car, pet and term life insurance, with product availability varying by location. Lemonade’s digital platform is designed to allow customers to obtain quotes, manage policies and submit claims without relying primarily on traditional insurance agents.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade initially focused on renters insurance before expanding into additional insurance categories.