Lemonade (NYSE:LMND) Stock Price Up 7.5% – Time to Buy?

Lemonade, Inc. (NYSE:LMND)’s stock price shot up 7.5% during trading on Friday . The stock traded as high as $41.06 and last traded at $40.95. 765,856 shares were traded during trading, a decline of 58% from the average session volume of 1,816,729 shares. The stock had previously closed at $38.10.

Wall Street Analyst Weigh In

LMND has been the subject of several recent research reports. Piper Sandler upped their price target on shares of Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research report on Thursday, November 21st. JMP Securities increased their price objective on Lemonade from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Friday, November 22nd. Keefe, Bruyette & Woods downgraded Lemonade from a “market perform” rating to an “underperform” rating and lifted their target price for the stock from $18.00 to $21.00 in a report on Thursday, November 7th. Jefferies Financial Group decreased their price target on Lemonade from $15.00 to $14.00 and set an “underperform” rating for the company in a research note on Wednesday, October 9th. Finally, BMO Capital Markets lifted their price objective on Lemonade from $13.00 to $15.00 and gave the stock an “underperform” rating in a research note on Thursday, November 21st. Three research analysts have rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $30.43.

Lemonade Stock Performance

The firm has a market cap of $3.03 billion, a P/E ratio of -13.95 and a beta of 2.09. The stock’s 50 day simple moving average is $33.62 and its 200 day simple moving average is $23.19.

Lemonade (NYSE:LMND) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.95) earnings per share for the quarter, beating the consensus estimate of ($1.02) by $0.07. The business had revenue of $136.60 million for the quarter, compared to analysts’ expectations of $129.10 million. Lemonade had a negative net margin of 43.51% and a negative return on equity of 32.85%. The firm’s revenue for the quarter was up 19.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.88) EPS. As a group, analysts forecast that Lemonade, Inc. will post -3.04 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, major shareholder Softbank Group Capital Ltd sold 719,815 shares of the company’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $44.29, for a total transaction of $31,880,606.35. Following the sale, the insider now directly owns 11,263,569 shares in the company, valued at $498,863,471.01. This represents a 6.01 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Michael A. Eisenberg sold 12,000 shares of the firm’s stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $40.15, for a total transaction of $481,800.00. Following the completion of the transaction, the director now owns 94,670 shares of the company’s stock, valued at $3,801,000.50. This trade represents a 11.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 862,657 shares of company stock valued at $37,608,059. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in LMND. Marshall Wace LLP purchased a new position in Lemonade in the 2nd quarter worth $14,181,000. General Equity Holdings LP purchased a new stake in shares of Lemonade during the second quarter valued at approximately $5,198,000. FMR LLC grew its holdings in shares of Lemonade by 93.0% in the third quarter. FMR LLC now owns 318,321 shares of the company’s stock worth $5,249,000 after purchasing an additional 153,362 shares during the last quarter. Millennium Management LLC increased its stake in shares of Lemonade by 388.7% in the second quarter. Millennium Management LLC now owns 165,689 shares of the company’s stock worth $2,734,000 after buying an additional 131,784 shares during the period. Finally, Verition Fund Management LLC bought a new stake in Lemonade during the 3rd quarter valued at $1,571,000. Institutional investors own 80.30% of the company’s stock.

Lemonade Company Profile

Lemonade, Inc provides various insurance products through various channels in the United States, Europe, and the United Kingdom. Its insurance products include stolen or damaged property, and personal liability that protects its customers if they are responsible for an accident or damage to another person or their property.