Lemonade (NYSE:LMND) Shares Gap Up After Better-Than-Expected Earnings

Lemonade, Inc. (NYSE:LMND) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $17.23, but opened at $18.27. Lemonade shares last traded at $18.30, with a volume of 811,621 shares traded.

The company reported ($0.67) earnings per share for the quarter, beating the consensus estimate of ($0.81) by $0.14. The company had revenue of $119.10 million for the quarter, compared to analyst estimates of $114.13 million. Lemonade had a negative return on equity of 31.29% and a negative net margin of 55.12%. Lemonade’s quarterly revenue was up 25.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.95) EPS.

Analysts Set New Price Targets

A number of analysts recently weighed in on LMND shares. JMP Securities reissued a “market outperform” rating and issued a $40.00 price objective on shares of Lemonade in a research report on Monday, April 15th. Piper Sandler restated a “neutral” rating and set a $17.00 price objective on shares of Lemonade in a report on Thursday, February 29th. TD Cowen began coverage on Lemonade in a research note on Wednesday, January 10th. They issued a “market perform” rating and a $17.00 target price on the stock. Morgan Stanley boosted their target price on shares of Lemonade from $13.00 to $14.00 and gave the company an “underweight” rating in a research note on Wednesday, February 28th. Finally, Keefe, Bruyette & Woods raised their price target on shares of Lemonade from $16.00 to $18.00 and gave the stock a “market perform” rating in a research note on Monday, March 4th. Two 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. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $17.11.

Insider Activity

In related news, CFO Timothy E. Bixby bought 10,000 shares of the company’s stock in a transaction on Wednesday, March 6th. The shares were acquired at an average price of $16.54 per share, with a total value of $165,400.00. Following the transaction, the chief financial officer now owns 10,000 shares of the company’s stock, valued at $165,400. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 11.70% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. McGlone Suttner Wealth Management Inc. acquired a new stake in Lemonade in the 4th quarter valued at about $30,000. Asset Management One Co. Ltd. grew its stake in shares of Lemonade by 48.0% in the third quarter. Asset Management One Co. Ltd. now owns 4,343 shares of the company’s stock worth $50,000 after acquiring an additional 1,409 shares in the last quarter. Tower Research Capital LLC TRC raised its stake in shares of Lemonade by 236.5% in the fourth quarter. Tower Research Capital LLC TRC now owns 5,246 shares of the company’s stock valued at $85,000 after acquiring an additional 3,687 shares in the last quarter. Quantbot Technologies LP purchased a new position in Lemonade in the third quarter valued at $108,000. Finally, Raymond James Financial Services Advisors Inc. acquired a new position in Lemonade during the 3rd quarter worth $117,000. 80.30% of the stock is owned by institutional investors and hedge funds.

Lemonade Trading Up 0.6 %

The company has a market cap of $1.22 billion, a PE ratio of -5.09 and a beta of 1.89. The company has a fifty day simple moving average of $16.85 and a two-hundred day simple moving average of $16.38.

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.