Lemonade (NYSE:LMND) Cut to “Sell” at Wall Street Zen

Lemonade (NYSE:LMND) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday, Wall Street Zen reports.

Other research analysts have also issued reports about the stock. Truist Financial cut their price objective on shares of Lemonade from $70.00 to $60.00 and set a “buy” rating on the stock in a report on Friday. Citizens Jmp decreased their price objective on Lemonade from $80.00 to $75.00 and set a “market outperform” rating on the stock in a research note on Friday. Morgan Stanley dropped their price target on shares of Lemonade from $56.00 to $48.00 and set an “equal weight” rating for the company in a research note on Tuesday, October 6th. Keefe, Bruyette & Woods upgraded 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. Finally, Piper Sandler cut their price objective on shares of Lemonade from $51.00 to $47.00 and set a “neutral” rating on the stock in a report on Friday. Four research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $61.12.

Lemonade Stock Performance

Shares of LMND stock opened at $39.59 on Friday. The stock has a market cap of $3.06 billion, a price-to-earnings ratio of -21.06 and a beta of 1.98. Lemonade has a 52-week low of $39.11 and a 52-week high of $99.90. The firm’s 50-day moving average is $46.66 and its 200-day moving average is $57.69.

Lemonade (NYSE:LMND) last issued its quarterly earnings data on Thursday, November 5th. The company reported ($0.56) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.58) by $0.02. Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%. The company had revenue of $336.10 million for the quarter, compared to the consensus estimate of $322.74 million. During the same quarter last year, the business posted ($0.51) earnings per share. The firm’s revenue was up 72.8% compared to the same quarter last year. Sell-side analysts predict that Lemonade will post -1.83 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider John Peters sold 2,249 shares of the firm’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $54.45, for a total transaction of $122,458.05. Following the completion of the sale, the insider directly owned 73,834 shares in the company, valued at $4,020,261.30. This trade represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $54.63, for a total transaction of $56,815.20. Following the transaction, the insider owned 186,533 shares in the company, valued at approximately $10,190,297.79. This represents a 0.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 in the last quarter. 12.20% of the stock is owned by company insiders.

Institutional Trading of Lemonade

Several institutional investors have recently added to or reduced their stakes in LMND. Ameritas Advisory Services LLC bought a new position in Lemonade during the 2nd quarter valued at $30,000. Allworth Financial LP lifted its stake in Lemonade by 115.2% in the 3rd quarter. Allworth Financial LP now owns 622 shares of the company’s stock worth $28,000 after purchasing an additional 333 shares in the last quarter. State of Wyoming purchased a new stake in shares of Lemonade in the 1st quarter worth $42,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Lemonade during the second quarter worth $128,000. Finally, Sterling Capital Management LLC increased its stake in shares of Lemonade by 838.3% during the third quarter. Sterling Capital Management LLC now owns 2,374 shares of the company’s stock worth $107,000 after purchasing an additional 2,121 shares in the last quarter. 80.30% of the stock is currently owned by institutional investors.

Key Stories Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q3 revenue rose 72.8% year over year to $336.1 million, above the $322.7 million consensus estimate. The $0.56-per-share loss was slightly narrower than analysts expected, and Q4 revenue guidance of $342 million to $346 million edged above estimates. Lemonade Q3 results
• Neutral Sentiment: Truist cut its price target to $60 from $70 but kept a Buy rating; Citizens JMP lowered its target to $75 from $80 and maintained Market Outperform. Piper Sandler reduced its target to $47 from $51 and retained a Neutral rating. The target cuts temper the analyst outlook, while the ratings remain mixed but generally supportive. Truist rating
• Negative Sentiment: The loss widened from $0.51 per share a year earlier, and coverage flagged rising expenses as a potential headwind to Lemonade’s AI-driven growth. The post-earnings decline suggests investors focused on profitability concerns despite the revenue and EPS beats. Q3 expense headwinds analysis

Lemonade Company Profile

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.