Lemonade (NYSE:LMND) Shares Gap Up – Should You Buy?

Lemonade, Inc. (NYSE:LMND) gapped up before the market opened on Wednesday . The stock had previously closed at $40.14, but opened at $42.88. Lemonade shares last traded at $45.42, with a volume of 2,961,819 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Piper Sandler increased their price target on Lemonade from $25.00 to $44.00 and gave the stock a “neutral” rating in a research report on Thursday. BMO Capital Markets increased their price objective on shares of Lemonade from $13.00 to $15.00 and gave the company an “underperform” rating in a research note on Thursday. Morgan Stanley raised shares of Lemonade from an “underweight” rating to an “equal weight” rating and boosted their price objective for the stock from $23.00 to $42.00 in a research note on Wednesday. Jefferies Financial Group dropped their price objective on Lemonade from $15.00 to $14.00 and set an “underperform” rating on the stock in a research report on Wednesday, October 9th. Finally, Keefe, Bruyette & Woods lowered shares of Lemonade from a “market perform” rating to an “underperform” rating and increased their price target for the company from $18.00 to $21.00 in a research report on Thursday, November 7th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $27.57.

Lemonade Stock Performance

The firm’s 50 day simple moving average is $22.36 and its 200 day simple moving average is $19.29. The firm has a market capitalization of $3.60 billion, a price-to-earnings ratio of -16.57 and a beta of 1.68.

Lemonade (NYSE:LMND) last released its quarterly earnings data on Wednesday, October 30th. The company reported ($0.95) earnings per share for the quarter, beating 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 business had revenue of $136.60 million during the quarter, compared to analyst estimates of $129.10 million. The company’s revenue was up 19.3% on a year-over-year basis. During the same quarter last year, the business posted ($0.88) EPS. As a group, sell-side analysts forecast that Lemonade, Inc. will post -3.05 earnings per share for the current year.

Insider Buying and Selling at Lemonade

In other Lemonade news, CFO Timothy E. Bixby sold 2,050 shares of the company’s stock in a transaction on Tuesday, September 10th. The shares were sold at an average price of $18.24, for a total transaction of $37,392.00. Following the completion of the transaction, the chief financial officer now directly owns 271,552 shares in the company, valued at approximately $4,953,108.48. This represents a 0.75 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Maria Angelidis-Smith bought 18,512 shares of the company’s stock in a transaction dated Friday, November 8th. The stock was bought at an average price of $27.42 per share, for a total transaction of $507,599.04. Following the transaction, the director now owns 18,512 shares of the company’s stock, valued at approximately $507,599.04. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last three months, insiders have sold 102,892 shares of company stock valued at $3,783,045. Company insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. State Street Corp grew its position in Lemonade by 1.2% in the third quarter. State Street Corp now owns 1,233,662 shares of the company’s stock worth $20,343,000 after acquiring an additional 14,028 shares during the period. Marshall Wace LLP acquired a new position in shares of Lemonade in the 2nd quarter worth approximately $14,181,000. Landscape Capital Management L.L.C. increased its holdings in Lemonade by 17.6% in 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 raised its position in Lemonade by 93.0% in the third 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 period. Finally, General Equity Holdings LP acquired a new position in Lemonade during the second quarter worth $5,198,000. 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.