Lemonade (NYSE:LMND) Shares Gap Up Following Strong Earnings

Lemonade, Inc. (NYSE:LMND)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $18.75, but opened at $20.88. Lemonade shares last traded at $22.72, with a volume of 1,258,140 shares traded.

The company reported ($0.95) earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.02) by $0.07. Lemonade had a negative return on equity of 31.86% and a negative net margin of 43.51%. The firm had revenue of $136.60 million during the quarter, compared to analyst estimates of $129.10 million. During the same quarter in the prior year, the company earned ($0.88) EPS. The business’s revenue was up 19.3% compared to the same quarter last year.

Analyst Ratings Changes

LMND has been the topic of a number of research reports. Piper Sandler boosted their target price on shares of Lemonade from $18.00 to $25.00 and gave the company a “neutral” rating in a report on Friday. JMP Securities reissued a “market outperform” rating and set a $40.00 price objective on shares of Lemonade in a research note on Tuesday, October 15th. Finally, Jefferies Financial Group decreased their target price on shares of Lemonade from $15.00 to $14.00 and set an “underperform” rating for the company in a research note on Wednesday, October 9th. Two equities 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 company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $21.33.

Insider Buying and Selling

In other Lemonade news, CFO Timothy E. Bixby sold 2,050 shares of the firm’s stock in a transaction dated 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 sale, the chief financial officer now directly owns 271,552 shares in the company, valued at approximately $4,953,108.48. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 12.50% of the stock is currently owned by company insiders.

Institutional Trading of Lemonade

Several institutional investors have recently added to or reduced their stakes in LMND. Blue Trust Inc. raised its holdings in shares of Lemonade by 220.0% during the third quarter. Blue Trust Inc. now owns 2,733 shares of the company’s stock valued at $45,000 after purchasing an additional 1,879 shares during the last quarter. Concurrent Investment Advisors LLC bought a new position in shares of Lemonade during the 2nd quarter valued at $180,000. Capstone Investment Advisors LLC bought a new position in shares of Lemonade during the 1st quarter valued at $214,000. Bristlecone Advisors LLC purchased a new position in shares of Lemonade in the 3rd quarter worth $218,000. Finally, Headlands Technologies LLC bought a new stake in shares of Lemonade in the first quarter worth $231,000. 80.30% of the stock is currently owned by hedge funds and other institutional investors.

Lemonade Price Performance

The business has a 50-day moving average of $18.11 and a 200 day moving average of $17.69. The company has a market cap of $1.72 billion, a PE ratio of -7.94 and a beta of 1.77.

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.