Lemonade (NYSE:LMND) Shares Gap Down – Here’s Why

Lemonade, Inc. (NYSE:LMND) gapped down prior to trading on Friday . The stock had previously closed at $34.44, but opened at $32.61. Lemonade shares last traded at $32.63, with a volume of 417,850 shares changing hands.

Analysts Set New Price Targets

A number of research firms have recently weighed in on LMND. BMO Capital Markets boosted their target price on Lemonade from $13.00 to $15.00 and gave the company an “underperform” rating in a research note on Thursday, November 21st. Morgan Stanley raised Lemonade from an “underweight” rating to an “equal weight” rating and upped their price target for the company from $23.00 to $42.00 in a research report on Wednesday, November 20th. Keefe, Bruyette & Woods lowered Lemonade from a “market perform” rating to an “underperform” rating and upped their price target for the company from $18.00 to $21.00 in a research report on Thursday, November 7th. Jefferies Financial Group lowered their price target on Lemonade from $15.00 to $14.00 and set an “underperform” rating for the company in a research report on Wednesday, October 9th. Finally, Piper Sandler upped their price target on Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research report on Thursday, November 21st. 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 company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $32.67.

Lemonade Trading Down 6.1 %

The business has a fifty day simple moving average of $39.66 and a two-hundred day simple moving average of $25.73. The stock has a market cap of $2.31 billion, a PE ratio of -10.63 and a beta of 2.17.

Lemonade (NYSE:LMND) last posted its earnings results on Wednesday, October 30th. The company reported ($0.95) earnings per share for the quarter, topping analysts’ consensus estimates of ($1.02) by $0.07. Lemonade had a negative return on equity of 32.85% and a negative net margin of 43.51%. The firm had revenue of $136.60 million for the quarter, compared to the consensus estimate of $129.10 million. During the same quarter in the prior year, the business earned ($0.88) EPS. The business’s revenue for the quarter was up 19.3% on a year-over-year basis. On average, research analysts predict that Lemonade, Inc. will post -3.04 earnings per share for the current year.

Insider Buying and Selling

In related news, major shareholder Softbank Group Capital Ltd sold 719,815 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $44.29, for a total value of $31,880,606.35. Following the sale, the insider now owns 11,263,569 shares in the company, valued at $498,863,471.01. This represents a 6.01 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider John Sheldon Peters sold 1,790 shares of the company’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $45.50, for a total value of $81,445.00. Following the completion of the sale, the insider now owns 88,493 shares in the company, valued at $4,026,431.50. The trade was a 1.98 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 900,499 shares of company stock worth $39,114,376 in the last 90 days. Insiders own 12.50% of the company’s stock.

Institutional Trading of Lemonade

Several institutional investors have recently added to or reduced their stakes in the business. State Street Corp boosted its stake in Lemonade by 1.2% during the 3rd quarter. State Street Corp now owns 1,233,662 shares of the company’s stock valued at $20,343,000 after purchasing an additional 14,028 shares during the last quarter. Marshall Wace LLP purchased a new stake in Lemonade during the 2nd quarter valued at $14,181,000. Landscape Capital Management L.L.C. boosted its stake in Lemonade by 17.6% during the 3rd quarter. Landscape Capital Management L.L.C. now owns 321,882 shares of the company’s stock valued at $5,308,000 after purchasing an additional 48,260 shares during the last quarter. FMR LLC boosted its stake in Lemonade by 93.0% during the 3rd quarter. FMR LLC now owns 318,321 shares of the company’s stock valued at $5,249,000 after purchasing an additional 153,362 shares during the last quarter. Finally, General Equity Holdings LP purchased a new stake in Lemonade during the 2nd quarter valued at $5,198,000. 80.30% of the stock is currently 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.