Lemonade (NYSE:LMND) Shares Gap Down – What’s Next?

Lemonade, Inc. (NYSE:LMND)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $36.98, but opened at $35.74. Lemonade shares last traded at $34.75, with a volume of 203,903 shares trading hands.

Analyst Ratings Changes

A number of research firms recently issued reports on LMND. JMP Securities raised their price target on Lemonade from $40.00 to $60.00 and gave the stock a “market outperform” rating in a report on Friday, November 22nd. Morgan Stanley upgraded shares of Lemonade from an “underweight” rating to an “equal weight” rating and raised their target price for the stock from $23.00 to $42.00 in a research note on Wednesday, November 20th. Piper Sandler cut their target price on Lemonade from $44.00 to $34.00 and set a “neutral” rating for the company in a research note on Wednesday, February 26th. Finally, BMO Capital Markets raised their target price on Lemonade from $13.00 to $15.00 and gave the company an “underperform” rating in a report on Thursday, November 21st. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $31.00.

Lemonade Trading Down 7.7 %

The company has a market capitalization of $2.49 billion, a price-to-earnings ratio of -11.19 and a beta of 2.12. The stock has a 50-day simple moving average of $34.23 and a 200-day simple moving average of $30.91.

Lemonade (NYSE:LMND) last issued its quarterly earnings results on Tuesday, February 25th. The company reported ($0.42) EPS for the quarter, topping the consensus estimate of ($0.61) by $0.19. The business had revenue of $148.80 million for the quarter, compared to analysts’ expectations of $144.78 million. Lemonade had a negative net margin of 43.51% and a negative return on equity of 32.85%. On average, research analysts forecast that Lemonade, Inc. will post -3.03 EPS for the current year.

Insider Activity

In other Lemonade news, insider John Sheldon Peters sold 28,985 shares of the stock in a transaction on Monday, December 30th. The shares were sold at an average price of $38.67, for a total transaction of $1,120,849.95. Following the sale, the insider now directly owns 69,508 shares of the company’s stock, valued at approximately $2,687,874.36. This represents a 29.43 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Softbank Group Capital Ltd sold 7,067 shares of the firm’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $43.02, for a total transaction of $304,022.34. Following the completion of the transaction, the insider now owns 10,699,211 shares in the company, valued at approximately $460,280,057.22. The trade was a 0.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 37,951 shares of company stock worth $1,489,040. 12.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Lemonade

A number of hedge funds have recently added to or reduced their stakes in LMND. Quarry LP increased its stake in shares of Lemonade by 300.4% in the fourth quarter. Quarry LP now owns 933 shares of the company’s stock valued at $34,000 after purchasing an additional 700 shares during the period. Avior Wealth Management LLC bought a new position in shares of Lemonade in the fourth quarter worth $40,000. Russell Investments Group Ltd. grew its stake in shares of Lemonade by 318.8% in the fourth quarter. Russell Investments Group Ltd. now owns 1,139 shares of the company’s stock worth $42,000 after purchasing an additional 867 shares in the last quarter. BNP Paribas bought a new stake in shares of Lemonade during the fourth quarter valued at about $57,000. Finally, PNC Financial Services Group Inc. increased its position in shares of Lemonade by 116.8% during the 4th quarter. PNC Financial Services Group Inc. now owns 1,596 shares of the company’s stock valued at $59,000 after purchasing an additional 860 shares during the period. 80.30% of the stock is currently owned by institutional investors.

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.