Lemonade (NYSE:LMND) Trading Down 6.5% – Should You Sell?

Lemonade, Inc. (NYSE:LMND)’s share price traded down 6.5% during trading on Friday . The company traded as low as $76.10 and last traded at $74.5910. 227,836 shares were traded during mid-day trading, a decline of 91% from the average session volume of 2,426,638 shares. The stock had previously closed at $79.80.

Wall Street Analysts Forecast Growth

LMND has been the subject of a number of recent research reports. JMP Securities set a $80.00 price target on shares of Lemonade in a research note on Monday, November 24th. Piper Sandler decreased their target price on shares of Lemonade from $60.00 to $55.00 and set a “neutral” rating for the company in a research note on Friday, October 10th. Weiss Ratings restated a “sell (d-)” rating on shares of Lemonade in a research report on Wednesday, October 8th. Morgan Stanley set a $85.00 price objective on Lemonade and gave the company an “equal weight” rating in a research note on Tuesday, December 16th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Lemonade in a research report on Monday, November 24th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $63.14.

Lemonade Stock Down 6.6%

The stock has a market capitalization of $5.57 billion, a PE ratio of -31.22 and a beta of 2.13. The firm’s fifty day moving average is $70.72 and its 200-day moving average is $55.96.

Lemonade (NYSE:LMND) last released its earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.72) by $0.21. The company had revenue of $194.50 million for the quarter, compared to analysts’ expectations of $185.06 million. Lemonade had a negative return on equity of 31.86% and a negative net margin of 26.39%.The firm’s quarterly revenue was up 42.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.95) EPS. On average, analysts expect that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Buying and Selling at Lemonade

In other Lemonade news, Director Debra Schwartz sold 4,200 shares of the business’s stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $83.59, for a total transaction of $351,078.00. Following the sale, the director directly owned 21,567 shares in the company, valued at approximately $1,802,785.53. The trade was a 16.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider John Sheldon Peters sold 3,554 shares of the company’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $81.00, for a total transaction of $287,874.00. Following the transaction, the insider directly owned 70,771 shares in the company, valued at approximately $5,732,451. This trade represents a 4.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 160,725 shares of company stock valued at $12,264,465. 14.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in LMND. Strategic Advocates LLC acquired a new stake in shares of Lemonade during the 3rd quarter valued at approximately $33,000. CIBC Bancorp USA Inc. purchased a new position in Lemonade in the 3rd quarter valued at approximately $318,000. Advisory Services Network LLC acquired a new position in Lemonade during the third quarter worth $216,000. CANADA LIFE ASSURANCE Co raised its holdings in Lemonade by 11.6% during the third quarter. CANADA LIFE ASSURANCE Co now owns 17,769 shares of the company’s stock worth $966,000 after purchasing an additional 1,844 shares during the last quarter. Finally, Worth Venture Partners LLC purchased a new stake in Lemonade during the third quarter worth $297,000. 80.30% of the stock is owned by hedge funds and other institutional investors.

About Lemonade

Lemonade, Inc (NYSE: LMND) is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company’s product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.