Lemonade (NYSE:LMND) Shares Down 7.2% – Time to Sell?

Lemonade, Inc. (NYSE:LMND)’s stock price fell 7.2% during trading on Friday . The stock traded as low as $61.23 and last traded at $61.2090. 597,420 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 2,605,556 shares. The stock had previously closed at $65.99.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on LMND. Keefe, Bruyette & Woods boosted their price target on shares of Lemonade from $40.00 to $44.00 and gave the company an “underperform” rating in a research report on Tuesday, February 24th. Cantor Fitzgerald raised their price objective on shares of Lemonade from $85.00 to $92.00 and gave the stock an “overweight” rating in a report on Wednesday, January 14th. Piper Sandler set a $65.00 price objective on Lemonade in a research report on Thursday, February 19th. Morgan Stanley upgraded Lemonade from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $80.00 to $85.00 in a report on Tuesday, March 17th. Finally, Citigroup reissued an “outperform” rating on shares of Lemonade in a research report on Friday, January 16th. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $68.75.

Lemonade Stock Performance

The stock’s 50-day moving average price is $67.54 and its two-hundred day moving average price is $66.92. The stock has a market capitalization of $4.60 billion, a PE ratio of -26.75 and a beta of 2.12.

Lemonade (NYSE:LMND) last issued its quarterly earnings results on Wednesday, February 18th. The company reported ($0.29) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.12. Lemonade had a negative net margin of 22.43% and a negative return on equity of 31.19%. The business’s quarterly revenue was up 53.3% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.42) earnings per share. On average, analysts predict that Lemonade, Inc. will post -3.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Lemonade news, insider John Sheldon Peters sold 3,571 shares of Lemonade stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $52.50, for a total transaction of $187,477.50. Following the completion of the transaction, the insider owned 76,729 shares in the company, valued at approximately $4,028,272.50. The trade was a 4.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Daniel A. Schreiber sold 9,108 shares of the business’s stock in a transaction on Friday, January 23rd. The stock was sold at an average price of $99.04, for a total value of $902,056.32. Following the completion of the sale, the chief executive officer directly owned 1,514,426 shares in the company, valued at $149,988,751.04. This trade represents a 0.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 160,300 shares of company stock worth $14,796,026. Insiders own 14.70% of the company’s stock.

Hedge Funds Weigh In On Lemonade

Large investors have recently modified their holdings of the stock. Corient Private Wealth LLC boosted its stake in Lemonade by 7.7% in the 4th quarter. Corient Private Wealth LLC now owns 6,334 shares of the company’s stock worth $451,000 after purchasing an additional 453 shares in the last quarter. Virtu Financial LLC increased its stake in Lemonade by 72.2% during the 4th quarter. Virtu Financial LLC now owns 45,145 shares of the company’s stock valued at $3,213,000 after purchasing an additional 18,929 shares in the last quarter. Invesco Ltd. increased its stake in Lemonade by 112.6% during the 4th quarter. Invesco Ltd. now owns 144,021 shares of the company’s stock valued at $10,251,000 after purchasing an additional 76,265 shares in the last quarter. Rare Wolf Capital LLC purchased a new position in Lemonade in the fourth quarter worth about $983,000. Finally, Strive Financial Group LLC bought a new position in shares of Lemonade in the fourth quarter worth approximately $38,000. 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.