Lemonade (NYSE:LMND) Downgraded by Wall Street Zen to Sell

Wall Street Zen lowered shares of Lemonade (NYSE:LMND) from a hold rating to a sell rating in a report published on Saturday,Wall Street Zen reports.

Several other equities analysts also recently weighed in on the company. Morgan Stanley cut their target price on Lemonade from $56.00 to $48.00 and set an “equal weight” rating on the stock in a research report on Tuesday, October 6th. Truist Financial lowered their price target on Lemonade from $70.00 to $60.00 and set a “buy” rating for the company in a research report on Friday. Citizens Jmp dropped their price objective on shares of Lemonade from $80.00 to $75.00 and set a “market outperform” rating for the company in a research note on Friday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lemonade in a research note on Thursday, October 15th. 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 research report on Friday. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Lemonade presently has an average rating of “Hold” and an average price target of $61.12.

Lemonade Trading Down 4.6%

LMND opened at $39.59 on Friday. The firm has a market cap of $3.06 billion, a P/E ratio of -21.06 and a beta of 1.98. Lemonade has a 12 month low of $39.11 and a 12 month high of $99.90. The stock has a 50-day moving average of $46.66 and a 200 day moving average of $57.69.

Lemonade (NYSE:LMND) last issued its quarterly earnings data on Thursday, November 5th. The company reported ($0.56) earnings per share for the quarter, topping the consensus estimate of ($0.58) by $0.02. Lemonade had a negative return on equity of 27.97% and a negative net margin of 12.95%. The company had revenue of $336.10 million for the quarter, compared to analysts’ expectations of $322.74 million. During the same period in the previous year, the firm posted ($0.51) earnings per share. The firm’s revenue for the quarter was up 72.8% on a year-over-year basis. On average, research analysts forecast that Lemonade will post -1.82 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Maya Prosor sold 1,040 shares of Lemonade stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $54.63, for a total transaction of $56,815.20. Following the completion of the sale, the insider directly owned 186,533 shares in the company, valued at approximately $10,190,297.79. This trade represents a 0.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Peters sold 2,249 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $54.45, for a total transaction of $122,458.05. Following the sale, the insider directly owned 73,834 shares of the company’s stock, valued at $4,020,261.30. This represents a 2.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last quarter, insiders sold 15,148 shares of company stock worth $804,250. Insiders own 12.20% of the company’s stock.

Institutional Investors Weigh In On Lemonade

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Lemonade during the second quarter worth approximately $393,408,000. Bank of America Corp DE boosted its holdings in shares of Lemonade by 52.1% in the first quarter. Bank of America Corp DE now owns 360,411 shares of the company’s stock valued at $22,591,000 after purchasing an additional 123,484 shares during the period. Bank of New York Mellon Corp bought a new position in Lemonade in the second quarter worth approximately $13,861,000. Canada Pension Plan Investment Board bought a new position in Lemonade in the second quarter worth approximately $13,550,000. Finally, Man Group plc purchased a new position in Lemonade during the 2nd quarter worth $8,864,000. 80.30% of the stock is owned by hedge funds and other 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

About Lemonade

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.