Traders Buy Large Volume of Call Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw unusually large options trading on Monday. Stock traders bought 17,303 call options on the company. This is an increase of approximately 69% compared to the typical daily volume of 10,217 call options.

Analyst Ratings Changes

A number of brokerages recently issued reports on LMND. Keefe, Bruyette & Woods decreased their target price on Lemonade from $25.00 to $22.00 and set an “underperform” rating on the stock in a report on Tuesday, April 22nd. Morgan Stanley cut Lemonade from an “equal weight” rating to an “underweight” rating and decreased their target price for the stock from $35.00 to $24.00 in a research report on Tuesday, April 8th. Finally, Piper Sandler decreased their target price on Lemonade from $44.00 to $34.00 and set a “neutral” rating for the company in a research report on Wednesday, February 26th. Four investment analysts have rated the stock with a sell rating, one has given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $28.17.

Insiders Place Their Bets

In related news, major shareholder Softbank Group Capital Ltd sold 42,160 shares of the firm’s stock in a transaction that occurred on Wednesday, March 26th. The stock was sold at an average price of $37.22, for a total value of $1,569,195.20. Following the sale, the insider now directly owns 10,452,476 shares in the company, valued at $389,041,156.72. This trade represents a 0.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider John Sheldon Peters sold 1,899 shares of the firm’s stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $33.79, for a total value of $64,167.21. Following the completion of the sale, the insider now owns 87,609 shares in the company, valued at approximately $2,960,308.11. This represents a 2.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,744,890 shares of company stock valued at $87,413,986 in the last quarter. Insiders own 14.70% of the company’s stock.

Institutional Trading of Lemonade

A number of institutional investors have recently bought and sold shares of LMND. JPMorgan Chase & Co. boosted its position in Lemonade by 2,627.9% during the fourth quarter. JPMorgan Chase & Co. now owns 1,349,356 shares of the company’s stock valued at $49,494,000 after purchasing an additional 1,299,891 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Lemonade by 14.9% in the first quarter. Vanguard Group Inc. now owns 6,138,444 shares of the company’s stock worth $192,931,000 after buying an additional 794,952 shares during the last quarter. Two Sigma Investments LP acquired a new stake in shares of Lemonade in the fourth quarter worth about $22,066,000. Voloridge Investment Management LLC acquired a new stake in shares of Lemonade in the fourth quarter worth about $21,310,000. Finally, Two Sigma Advisers LP acquired a new stake in shares of Lemonade in the fourth quarter worth about $15,412,000. Institutional investors and hedge funds own 80.30% of the company’s stock.

Lemonade Price Performance

LMND traded up $2.60 during trading on Monday, reaching $36.10. 3,466,331 shares of the stock traded hands, compared to its average volume of 2,036,536. The stock has a market cap of $2.64 billion, a price-to-earnings ratio of -11.88 and a beta of 2.13. Lemonade has a fifty-two week low of $14.03 and a fifty-two week high of $53.85. The stock’s 50-day simple moving average is $29.90 and its two-hundred day simple moving average is $34.97.

Lemonade (NYSE:LMND) last released its quarterly earnings data on Wednesday, May 7th. The company reported ($0.86) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.84) by ($0.02). 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 27.0% on a year-over-year basis. During the same period last year, the firm posted ($0.67) EPS. Research analysts anticipate that Lemonade will post -3.03 earnings per share for the current fiscal year.

About Lemonade

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.