Lemonade (NYSE:LMND) Shares Down 9.2% – Time to Sell?

Shares of Lemonade, Inc. (NYSE:LMND) fell 9.2% on Wednesday . The stock traded as low as $70.98 and last traded at $70.48. Approximately 300,477 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 2,079,488 shares. The stock had previously closed at $77.59.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on LMND shares. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Lemonade in a report on Tuesday, May 26th. UBS Group set a $75.00 target price on Lemonade in a research report on Thursday, May 21st. Piper Sandler lowered their target price on shares of Lemonade from $65.00 to $62.00 and set a “neutral” rating on the stock in a research note on Thursday, April 30th. Citizens Jmp dropped their price target on shares of Lemonade from $85.00 to $80.00 and set a “market outperform” rating on the stock in a report on Thursday, April 30th. Finally, Truist Financial reduced their price target on shares of Lemonade from $98.00 to $70.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. Four analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Lemonade has a consensus rating of “Hold” and an average target price of $65.33.

Lemonade Stock Performance

The stock has a market capitalization of $5.36 billion, a P/E ratio of -37.21 and a beta of 1.79. The firm has a fifty day moving average price of $58.54 and a two-hundred day moving average price of $65.26.

Lemonade (NYSE:LMND) last issued its quarterly earnings data on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, topping the consensus estimate of ($0.58) by $0.11. The company had revenue of $258.00 million during the quarter, compared to analyst estimates of $251.51 million. Lemonade had a negative return on equity of 26.52% and a negative net margin of 16.44%.Lemonade’s revenue was up 70.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.86) earnings per share. On average, research analysts anticipate that Lemonade, Inc. will post -1.71 earnings per share for the current fiscal year.

Insider Transactions at Lemonade

In other news, insider Maya Prosor sold 1,220 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $53.17, for a total value of $64,867.40. Following the transaction, the insider owned 187,573 shares in the company, valued at $9,973,256.41. This represents a 0.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 3,608 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $52.94, for a total transaction of $191,007.52. Following the completion of the transaction, the insider directly owned 81,386 shares in the company, valued at approximately $4,308,574.84. The trade was a 4.25% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last 90 days, insiders have sold 6,563 shares of company stock valued at $348,125. Corporate insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in shares of Lemonade by 0.4% during the 4th quarter. Vanguard Group Inc. now owns 6,305,453 shares of the company’s stock worth $448,822,000 after acquiring an additional 26,312 shares during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in Lemonade by 186.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,484,175 shares of the company’s stock worth $105,644,000 after purchasing an additional 965,321 shares during the period. Geode Capital Management LLC raised its holdings in Lemonade by 4.9% in the 4th quarter. Geode Capital Management LLC now owns 1,438,358 shares of the company’s stock worth $102,400,000 after purchasing an additional 67,562 shares during the period. Bank of America Corp DE lifted its position in Lemonade by 28.1% during the second quarter. Bank of America Corp DE now owns 993,669 shares of the company’s stock valued at $43,533,000 after purchasing an additional 217,913 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in Lemonade by 50.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 866,476 shares of the company’s stock valued at $61,676,000 after purchasing an additional 291,122 shares in the last quarter. 80.30% of the stock is currently owned by institutional investors.

Lemonade Company Profile

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.