Lemonade (NYSE:LMND) Sets New 52-Week Low – What’s Next?

Lemonade, Inc. (NYSE:LMND) shares hit a new 52-week low on Friday. The company traded as low as $42.60 and last traded at $42.62, with a volume of 643,554 shares. The stock had previously closed at $45.91.

Analysts Set New Price Targets

LMND has been the subject of several recent research reports. Keefe, Bruyette & Woods upgraded shares of Lemonade from an “underperform” rating to a “market perform” rating and set a $48.00 target price for the company in a report on Thursday, July 30th. Morgan Stanley dropped their price target on Lemonade from $56.00 to $48.00 and set an “equal weight” rating on the stock in a research report on Tuesday, October 6th. Wall Street Zen upgraded Lemonade from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Piper Sandler reduced their price objective on Lemonade from $75.00 to $51.00 and set a “neutral” rating for the company in a research report on Thursday, July 30th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a research report on Thursday, October 15th. Four research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $63.50.

Lemonade Stock Down 6.5%

The stock has a market cap of $3.32 billion, a PE ratio of -23.45 and a beta of 1.87. The stock’s fifty day moving average price is $47.86 and its 200 day moving average price is $58.65.

Lemonade (NYSE:LMND) last released its quarterly earnings data on Tuesday, July 28th. The company reported ($0.56) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.56). Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%. The business had revenue of $294.40 million for the quarter, compared to analysts’ expectations of $291.01 million. During the same period in the prior year, the firm posted ($0.60) EPS. The firm’s quarterly revenue was up 79.4% on a year-over-year basis. On average, equities research analysts expect that Lemonade, Inc. will post -1.83 earnings per share for the current fiscal year.

Insider Buying and Selling

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 transaction of $122,458.05. Following the completion of the transaction, the insider directly owned 73,834 shares of the company’s stock, valued at $4,020,261.30. The trade was a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total value of $56,815.20. Following the completion of the transaction, the insider directly owned 186,533 shares in the company, valued at approximately $10,190,297.79. This 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. Insiders sold 15,148 shares of company stock valued at $804,250 over the last quarter. Company insiders own 12.20% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of Lemonade during the 2nd quarter valued at about $393,408,000. Bank of America Corp DE increased its holdings in Lemonade by 52.1% during the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company’s stock worth $22,591,000 after purchasing an additional 123,484 shares during the period. Lido Advisors LLC purchased a new position in Lemonade during the 1st quarter valued at about $1,318,000. Baird Financial Group Inc. bought a new position in shares of Lemonade in the 2nd quarter worth $3,529,000. Finally, Deutsche Bank AG bought a new position in shares of Lemonade during the 2nd quarter worth approximately $5,078,000. 80.30% of the stock is owned by hedge funds and other institutional investors.

About Lemonade

Lemonade, Inc is a technology-driven insurance company that offers insurance products through digital platforms, including its mobile application and website. The company uses artificial intelligence, automation and data analytics to support policy purchasing, customer service and claims processing.

Lemonade’s product offerings include renters, homeowners, car, pet and term life insurance. Coverage and product availability vary by jurisdiction, and some policies are provided through regulated insurance subsidiaries or underwritten in partnership with other insurers.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade serves customers in the United States and selected European markets, including Germany, the Netherlands, France and the United Kingdom.