Lemonade (NYSE:LMND) Shares Down 5.9% – Should You Sell?

Lemonade, Inc. (NYSE:LMND)’s share price was down 5.9% during mid-day trading on Wednesday . The company traded as low as $34.42 and last traded at $35.11. Approximately 536,765 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 1,843,510 shares. The stock had previously closed at $37.31.

Wall Street Analysts Forecast Growth

LMND has been the topic of a number of recent analyst reports. Keefe, Bruyette & Woods downgraded shares of Lemonade from a “market perform” rating to an “underperform” rating and increased their price objective for the company from $18.00 to $21.00 in a research report on Thursday, November 7th. JMP Securities increased their target price on Lemonade from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Friday, November 22nd. BMO Capital Markets lifted their price target on Lemonade from $13.00 to $15.00 and gave the stock an “underperform” rating in a report on Thursday, November 21st. Morgan Stanley raised Lemonade from an “underweight” rating to an “equal weight” rating and upped their price objective for the stock from $23.00 to $42.00 in a research report on Wednesday, November 20th. Finally, Piper Sandler cut their target price on Lemonade from $44.00 to $34.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 26th. Three research analysts have rated the stock with a sell rating, two have issued a hold rating and one has given a buy rating to the stock. According to MarketBeat, Lemonade has an average rating of “Hold” and an average target price of $31.00.

Lemonade Price Performance

The firm has a market cap of $2.54 billion, a price-to-earnings ratio of -11.72 and a beta of 2.15. The stock has a 50-day moving average price of $34.94 and a 200 day moving average price of $29.84.

Lemonade (NYSE:LMND) last released 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 company had revenue of $148.80 million for the quarter, compared to analyst estimates of $144.78 million. Lemonade had a negative return on equity of 32.85% and a negative net margin of 43.51%. As a group, equities research analysts predict that Lemonade, Inc. will post -3.03 earnings per share for the current year.

Insider Buying and Selling at Lemonade

In other news, major shareholder Softbank Group Capital Ltd sold 719,815 shares of the firm’s stock in a transaction on Monday, December 16th. The shares were sold at an average price of $44.29, for a total value of $31,880,606.35. Following the completion of the sale, the insider now owns 11,263,569 shares in the company, valued at approximately $498,863,471.01. This trade represents a 6.01 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider John Sheldon Peters sold 28,985 shares of Lemonade stock in a transaction dated 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 completion of the sale, the insider now directly owns 69,508 shares in the company, valued at approximately $2,687,874.36. The trade was a 29.43 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 767,867 shares of company stock valued at $33,787,279 in the last ninety days. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Lemonade

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

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.