Investors Buy High Volume of Put Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw unusually large options trading activity on Friday. Stock traders purchased 13,999 put options on the company. This is an increase of 20% compared to the average daily volume of 11,674 put options.

Insider Buying and Selling

In other Lemonade news, Director Michael A. Eisenberg sold 12,000 shares of the firm’s stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $40.15, for a total transaction of $481,800.00. Following the completion of the transaction, the director now owns 94,670 shares of the company’s stock, valued at approximately $3,801,000.50. This trade represents a 11.25 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, major shareholder Softbank Group Capital Ltd sold 7,067 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $43.02, for a total value of $304,022.34. Following the completion of the sale, the insider now directly owns 10,699,211 shares in the company, valued at approximately $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. Insiders sold a total of 871,514 shares of company stock valued at $37,993,527 over the last three months. Corporate insiders own 12.50% of the company’s stock.

Institutional Trading of Lemonade

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

Analysts Set New Price Targets

Several research firms have commented on LMND. Jefferies Financial Group dropped their target price on Lemonade from $15.00 to $14.00 and set an “underperform” rating on the stock in a report on Wednesday, October 9th. Keefe, Bruyette & Woods cut shares of Lemonade from a “market perform” rating to an “underperform” rating and upped their price target for the stock from $18.00 to $21.00 in a research note on Thursday, November 7th. Morgan Stanley upgraded shares of Lemonade from an “underweight” rating to an “equal weight” rating and raised their price objective for the company from $23.00 to $42.00 in a research note on Wednesday, November 20th. BMO Capital Markets upped their target price on shares of Lemonade from $13.00 to $15.00 and gave the stock an “underperform” rating in a research note on Thursday, November 21st. Finally, Piper Sandler raised their price target on shares of Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research report on Thursday, November 21st. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $30.43.

Lemonade Stock Down 10.8 %

LMND opened at $39.40 on Friday. The stock has a market capitalization of $2.81 billion, a price-to-earnings ratio of -12.96 and a beta of 2.09. The firm has a 50 day moving average price of $36.36 and a 200-day moving average price of $24.30. Lemonade has a twelve month low of $14.03 and a twelve month high of $53.85.

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

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.