Lemonade (NYSE:LMND) Shares Down 5.2% Following Insider Selling

Lemonade, Inc. (NYSE:LMND) was down 5.2% on Monday after an insider sold shares in the company. The company traded as low as $39.31 and last traded at $39.37. Approximately 451,564 shares changed hands during trading, a decline of 75% from the average daily volume of 1,821,631 shares. The stock had previously closed at $41.54.

Specifically, insider John Sheldon Peters sold 1,790 shares of the firm’s stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $45.50, for a total transaction of $81,445.00. Following the completion of the transaction, the insider now owns 88,493 shares of the company’s stock, valued at approximately $4,026,431.50. This trade represents a 1.98 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, major shareholder Softbank Group Capital Ltd sold 7,067 shares of the company’s stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $43.02, for a total transaction of $304,022.34. Following the completion of the sale, the insider now directly owns 10,699,211 shares in the company, valued at $460,280,057.22. This represents a 0.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, major shareholder Softbank Group Capital Ltd sold 719,815 shares of Lemonade stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $44.29, for a total transaction of $31,880,606.35. Following the completion of the transaction, the insider now directly owns 11,263,569 shares of the company’s stock, valued at $498,863,471.01. This trade represents a 6.01 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on LMND. BMO Capital Markets upped their price objective on shares of Lemonade from $13.00 to $15.00 and gave the stock an “underperform” rating in a report on Thursday, November 21st. Jefferies Financial Group reduced their price objective on Lemonade from $15.00 to $14.00 and set an “underperform” rating for the company in a research report on Wednesday, October 9th. Piper Sandler lifted their price objective on Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research note on Thursday, November 21st. JMP Securities increased their target price on Lemonade from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research note on Friday, November 22nd. Finally, Keefe, Bruyette & Woods lowered Lemonade from a “market perform” rating to an “underperform” rating and lifted their price target for the stock from $18.00 to $21.00 in a research report on Thursday, November 7th. Three equities research analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $30.43.

Lemonade Price Performance

The stock has a market cap of $2.95 billion, a PE ratio of -13.58 and a beta of 2.08. The company has a 50 day moving average price of $34.55 and a two-hundred day moving average price of $23.64.

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

Institutional Investors Weigh In On Lemonade

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Marshall Wace LLP purchased a new stake in Lemonade during the 2nd quarter valued at $14,181,000. General Equity Holdings LP purchased a new position in shares of Lemonade in the 2nd quarter worth $5,198,000. FMR LLC grew its holdings in shares of Lemonade by 93.0% in the third quarter. FMR LLC now owns 318,321 shares of the company’s stock worth $5,249,000 after acquiring an additional 153,362 shares during the period. Millennium Management LLC increased its position in Lemonade by 388.7% during the second quarter. Millennium Management LLC now owns 165,689 shares of the company’s stock valued at $2,734,000 after acquiring an additional 131,784 shares during the last quarter. Finally, Verition Fund Management LLC bought a new position in Lemonade in the third quarter valued at about $1,571,000. Hedge funds and other institutional investors own 80.30% of the company’s stock.

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.