Lemonade (NYSE:LMND) Rating Lowered to Sell at Wall Street Zen

Lemonade (NYSE:LMND) was downgraded by equities research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued on Saturday.

Other research analysts have also recently issued research reports about the company. UBS Group set a $75.00 target price on Lemonade in a research note on Thursday, May 21st. TD Cowen reiterated a “hold” rating on shares of Lemonade in a research report on Monday, June 8th. Morgan Stanley cut their price target on shares of Lemonade from $65.00 to $56.00 and set an “equal weight” rating for the company in a report on Wednesday, August 19th. Piper Sandler reduced their price objective on shares of Lemonade from $75.00 to $51.00 and set a “neutral” rating for the company in a research report on Thursday, July 30th. Finally, Cantor Fitzgerald restated an “overweight” rating on shares of Lemonade in a research report on Tuesday, May 26th. Four research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $64.50.

Lemonade Stock Performance

Shares of NYSE LMND opened at $53.29 on Friday. The stock has a fifty day moving average price of $60.00 and a two-hundred day moving average price of $59.86. The firm has a market cap of $4.12 billion, a P/E ratio of -29.12 and a beta of 1.84. Lemonade has a 1 year low of $46.16 and a 1 year high of $99.90.

Lemonade (NYSE:LMND) last issued its quarterly earnings results on Tuesday, July 28th. The company reported ($0.56) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.56). Lemonade had a negative return on equity of 26.78% and a negative net margin of 14.19%.The company had revenue of $294.40 million for the quarter, compared to analysts’ expectations of $291.01 million. During the same period last year, the firm earned ($0.60) EPS. The firm’s revenue for the quarter was up 79.4% on a year-over-year basis. On average, research analysts predict that Lemonade will post -1.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Maya Prosor sold 1,220 shares of Lemonade stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the transaction, the insider directly owned 187,573 shares in the company, valued at $9,973,256.41. The trade was a 0.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 11,000 shares of the business’s stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $52.55, for a total value of $578,050.00. Following the sale, the insider directly owned 76,942 shares in the company, valued at $4,043,302.10. This trade represents a 12.51% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 21,007 shares of company stock valued at $1,198,251 in the last quarter. Insiders own 12.20% of the company’s stock.

Hedge Funds Weigh In On Lemonade

A number of institutional investors have recently bought and sold shares of LMND. Caitong International Asset Management Co. Ltd raised its holdings in Lemonade by 8,080.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 409 shares of the company’s stock worth $29,000 after buying an additional 404 shares during the period. Ameritas Advisory Services LLC purchased a new position in shares of Lemonade in the second quarter worth approximately $30,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Lemonade in the fourth quarter worth approximately $33,000. Torren Management LLC acquired a new stake in shares of Lemonade during the fourth quarter valued at approximately $35,000. Finally, NewEdge Advisors LLC purchased a new stake in shares of Lemonade in the 1st quarter valued at approximately $35,000. Hedge funds and other institutional investors own 80.30% of the company’s stock.

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.