Lemonade (NYSE:LMND) Shares Down 7.4% After Insider Selling

Lemonade, Inc. (NYSE:LMND) shares traded down 7.4% during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $87.41 and last traded at $86.36. 1,418,681 shares were traded during trading, a decline of 37% from the average session volume of 2,263,787 shares. The stock had previously closed at $93.25.

Specifically, insider John Sheldon Peters sold 9,000 shares of the firm’s stock in a transaction dated Thursday, January 22nd. The shares were sold at an average price of $90.00, for a total transaction of $810,000.00. Following the completion of the sale, the insider owned 70,228 shares in the company, valued at approximately $6,320,520. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Daniel A. Schreiber sold 126,625 shares of the stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $94.74, for a total transaction of $11,996,452.50. Following the sale, the chief executive officer owned 1,523,534 shares in the company, valued at $144,339,611.16. This represents a 7.67% decrease in their position. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. Citigroup reiterated an “outperform” rating on shares of Lemonade in a research report on Friday, January 16th. Piper Sandler dropped their price objective on shares of Lemonade from $60.00 to $55.00 and set a “neutral” rating for the company in a research note on Friday, October 10th. JMP Securities set a $80.00 target price on shares of Lemonade in a research report on Monday, November 24th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a report on Thursday. Finally, Morgan Stanley set a $85.00 price target on Lemonade and gave the company an “equal weight” rating in a research note on Tuesday, December 16th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $71.50.

Lemonade Price Performance

The firm has a market capitalization of $6.43 billion, a price-to-earnings ratio of -36.16 and a beta of 1.98. The business’s fifty day simple moving average is $77.82 and its 200 day simple moving average is $61.72.

Lemonade (NYSE:LMND) last released its quarterly earnings data on Wednesday, November 5th. The company reported ($0.51) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.72) by $0.21. The firm had revenue of $194.50 million for the quarter, compared to analyst estimates of $185.06 million. Lemonade had a negative net margin of 26.39% and a negative return on equity of 31.86%. The business’s quarterly revenue was up 42.4% compared to the same quarter last year. During the same period last year, the firm earned ($0.95) earnings per share. Equities research analysts expect that Lemonade, Inc. will post -3.03 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the company. Analyst IMS Investment Management Services Ltd. increased its stake in Lemonade by 80.7% in the second quarter. Analyst IMS Investment Management Services Ltd. now owns 571,768 shares of the company’s stock valued at $25,049,000 after acquiring an additional 255,368 shares during the last quarter. Halter Ferguson Financial Inc. grew its stake in shares of Lemonade by 101.3% in the third quarter. Halter Ferguson Financial Inc. now owns 575,906 shares of the company’s stock worth $30,828,000 after purchasing an additional 289,803 shares during the last quarter. Bank of New York Mellon Corp increased its stake in shares of Lemonade by 4.3% during the second quarter. Bank of New York Mellon Corp now owns 160,328 shares of the company’s stock valued at $7,024,000 after buying an additional 6,646 shares during the period. Titleist Asset Management LLC purchased a new stake in Lemonade during the 2nd quarter valued at about $203,000. Finally, Jump Financial LLC boosted its holdings in shares of Lemonade by 365.8% during the 2nd quarter. Jump Financial LLC now owns 581,378 shares of the company’s stock valued at $25,470,000 after acquiring an additional 456,571 shares during the last quarter. 80.30% of the stock is owned by institutional investors.

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.