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

Lemonade, Inc. (NYSE:LMND) shares gapped up before the market opened on Wednesday . The stock had previously closed at $40.14, but opened at $42.88. Lemonade shares last traded at $45.42, with a volume of 2,961,819 shares.

Analyst Ratings Changes

A number of brokerages have commented on LMND. Keefe, Bruyette & Woods cut Lemonade from a “market perform” rating to an “underperform” rating and boosted their price objective for the stock from $18.00 to $21.00 in a research note on Thursday, November 7th. Piper Sandler upped their price target on Lemonade from $18.00 to $25.00 and gave the company a “neutral” rating in a research report on Friday, November 1st. JMP Securities reiterated a “market outperform” rating and set a $40.00 price target on shares of Lemonade in a research report on Tuesday, October 15th. Morgan Stanley raised Lemonade from an “underweight” rating to an “equal weight” rating and lifted their price target for the company from $23.00 to $42.00 in a report on Wednesday. Finally, Jefferies Financial Group lowered their price objective on shares of Lemonade from $15.00 to $14.00 and set an “underperform” rating on the stock in a research note on Wednesday, October 9th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $26.50.

Lemonade Stock Up 15.6 %

The firm has a market capitalization of $3.31 billion, a price-to-earnings ratio of -15.19 and a beta of 1.68. The business has a 50-day moving average of $21.13 and a two-hundred day moving average of $18.88.

Lemonade (NYSE:LMND) last issued its earnings results on Wednesday, October 30th. The company reported ($0.95) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($1.02) by $0.07. Lemonade had a negative return on equity of 32.85% and a negative net margin of 43.51%. The business had revenue of $136.60 million during the quarter, compared to analysts’ expectations of $129.10 million. During the same period in the prior year, the firm posted ($0.88) EPS. Lemonade’s quarterly revenue was up 19.3% compared to the same quarter last year. Equities analysts predict that Lemonade, Inc. will post -3.05 EPS for the current fiscal year.

Insider Activity

In other news, CFO Timothy E. Bixby sold 2,050 shares of the company’s stock in a transaction dated Tuesday, September 10th. The stock was sold at an average price of $18.24, for a total value of $37,392.00. Following the completion of the sale, the chief financial officer now directly owns 271,552 shares of the company’s stock, valued at $4,953,108.48. This represents a 0.75 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Maria Angelidis-Smith purchased 15,042 shares of the firm’s stock in a transaction dated Wednesday, November 13th. The stock was purchased at an average cost of $33.23 per share, with a total value of $499,845.66. Following the acquisition, the director now directly owns 33,554 shares in the company, valued at $1,114,999.42. This trade represents a 81.26 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold 55,604 shares of company stock valued at $1,655,085 over the last 90 days. 12.50% of the stock is owned by company insiders.

Institutional Trading of Lemonade

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Blue Trust Inc. increased its position in shares of Lemonade by 220.0% during the 3rd quarter. Blue Trust Inc. now owns 2,733 shares of the company’s stock worth $45,000 after purchasing an additional 1,879 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. boosted its holdings in Lemonade by 321.3% in the 3rd quarter. Point72 Asia Singapore Pte. Ltd. now owns 4,462 shares of the company’s stock valued at $74,000 after purchasing an additional 3,403 shares during the period. Quest Partners LLC raised its holdings in Lemonade by 1,647.6% in the 3rd quarter. Quest Partners LLC now owns 9,105 shares of the company’s stock valued at $150,000 after acquiring an additional 8,584 shares in the last quarter. Concurrent Investment Advisors LLC bought a new position in shares of Lemonade in the 2nd quarter valued at $180,000. Finally, Bristlecone Advisors LLC acquired a new stake in shares of Lemonade in the 3rd quarter valued at approximately $218,000. 80.30% of the stock is currently owned by institutional investors and hedge funds.

About Lemonade

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.