Lemonade (NYSE:LMND) Posts Earnings Results, Beats Expectations By $0.21 EPS

Lemonade (NYSE:LMND) posted its quarterly earnings results on Wednesday. The company reported ($0.51) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.72) by $0.21, Zacks reports. Lemonade had a negative net margin of 33.96% and a negative return on equity of 36.12%. The firm had revenue of $194.50 million for the quarter, compared to analysts’ expectations of $185.06 million. During the same period in the prior year, the company posted ($0.95) earnings per share. The firm’s quarterly revenue was up 42.4% on a year-over-year basis. Lemonade updated its Q4 2025 guidance to EPS and its FY 2025 guidance to EPS.

Lemonade Stock Up 34.4%

Shares of LMND stock opened at $78.82 on Thursday. The business has a 50 day moving average of $54.33 and a two-hundred day moving average of $44.87. Lemonade has a 52 week low of $24.31 and a 52 week high of $79.71. The company has a market cap of $5.82 billion, a P/E ratio of -27.85 and a beta of 2.27.

Insider Buying and Selling at Lemonade

In related news, insider John Sheldon Peters sold 2,718 shares of the firm’s stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $50.34, for a total value of $136,824.12. Following the sale, the insider owned 102,397 shares of the company’s stock, valued at approximately $5,154,664.98. This trade represents a 2.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 14.70% of the company’s stock.

Institutional Investors Weigh In On Lemonade

A number of hedge funds have recently added to or reduced their stakes in LMND. FORA Capital LLC bought a new position in shares of Lemonade during the second quarter worth about $816,000. Headlands Technologies LLC acquired a new position in Lemonade during the 2nd quarter valued at about $155,000. Tower Research Capital LLC TRC grew its position in Lemonade by 1,259.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 23,607 shares of the company’s stock worth $1,034,000 after purchasing an additional 21,871 shares during the last quarter. Corient Private Wealth LLC bought a new position in Lemonade in the 2nd quarter worth about $315,000. Finally, Tidal Investments LLC increased its stake in shares of Lemonade by 13.7% in the second quarter. Tidal Investments LLC now owns 41,325 shares of the company’s stock valued at $1,810,000 after purchasing an additional 4,994 shares during the period. 80.30% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

LMND has been the subject of several research analyst reports. Cantor Fitzgerald raised shares of Lemonade to a “strong-buy” rating in a research report on Wednesday, August 13th. BMO Capital Markets boosted their price objective on Lemonade from $23.00 to $42.00 and gave the company an “underperform” rating in a report on Monday, August 18th. Wall Street Zen upgraded Lemonade from a “sell” rating to a “hold” rating in a research note on Saturday, August 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a report on Wednesday, October 8th. Finally, Morgan Stanley lifted their target price on Lemonade from $43.00 to $45.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $48.00.

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.