Stock Traders Purchase High Volume of Call Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw unusually large options trading on Thursday. Traders purchased 31,222 call options on the stock. This represents an increase of 69% compared to the average volume of 18,479 call options.

Wall Street Analysts Forecast Growth

LMND has been the subject of several research reports. Cantor Fitzgerald lifted their price target on shares of Lemonade from $85.00 to $92.00 and gave the company an “overweight” rating in a report on Wednesday, January 14th. Truist Financial initiated coverage on shares of Lemonade in a report on Tuesday, January 6th. They issued a “buy” rating and a $98.00 target price on the stock. Citigroup reaffirmed an “outperform” rating on shares of Lemonade in a report on Friday, January 16th. Citizens Jmp increased their price target on Lemonade from $60.00 to $80.00 and gave the stock a “market outperform” rating in a research report on Monday, November 24th. Finally, JMP Securities set a $80.00 price objective on Lemonade in a research report on Monday, November 24th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $71.50.

Lemonade Price Performance

Lemonade stock opened at $93.10 on Friday. Lemonade has a 12-month low of $24.31 and a 12-month high of $99.90. The stock has a market capitalization of $6.96 billion, a PE ratio of -38.95 and a beta of 1.98. The firm has a 50 day simple moving average of $77.82 and a 200-day simple moving average of $61.44.

Lemonade (NYSE:LMND) last issued its quarterly earnings results on Wednesday, November 5th. The company reported ($0.51) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.72) by $0.21. Lemonade had a negative return on equity of 31.86% and a negative net margin of 26.39%.The firm had revenue of $194.50 million during the quarter, compared to analyst estimates of $185.06 million. During the same period last year, the company posted ($0.95) EPS. The firm’s quarterly revenue was up 42.4% on a year-over-year basis. On average, analysts forecast that Lemonade will post -3.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider John Sheldon Peters sold 18,930 shares of the stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $72.77, for a total transaction of $1,377,536.10. Following the completion of the transaction, the insider directly owned 83,467 shares in the company, valued at approximately $6,073,893.59. This represents a 18.49% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Daniel A. Schreiber sold 126,625 shares of Lemonade stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $94.74, for a total transaction of $11,996,452.50. Following the completion of the sale, the chief executive officer owned 1,523,534 shares of the company’s stock, valued at approximately $144,339,611.16. This trade represents a 7.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 306,350 shares of company stock valued at $25,870,918. Company insiders own 14.70% of the company’s stock.

Hedge Funds Weigh In On Lemonade

Several hedge funds have recently made changes to their positions in LMND. Bayforest Capital Ltd purchased a new stake in Lemonade in the 3rd quarter worth about $25,000. Strategic Advocates LLC acquired a new stake in shares of Lemonade during the third quarter worth approximately $33,000. Estabrook Capital Management purchased a new position in Lemonade during the second quarter valued at approximately $44,000. Tsfg LLC purchased a new position in Lemonade during the third quarter valued at approximately $54,000. Finally, Farther Finance Advisors LLC increased its stake in Lemonade by 127.1% in the 4th quarter. Farther Finance Advisors LLC now owns 1,024 shares of the company’s stock valued at $73,000 after buying an additional 573 shares during the period. Institutional investors and hedge funds own 80.30% of the company’s stock.

More Lemonade News

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Strategic Tesla partnership — Lemonade announced a technical collaboration to price miles driven under Tesla FSD with a ~50% discount, which investors view as validation of Lemonade’s data-driven pricing and a potential path to profitable customer acquisition. Lemonade’s Tesla Deal Could Rewrite How Auto Insurance Is Priced
• Positive Sentiment: Product rollout & market reaction — Multiple press pieces highlight Lemonade’s new autonomous‑vehicle insurance for Tesla FSD users and the stock recently hit a multi‑year/52‑week high as investors priced in growth and margin upside from cross‑selling and lower acquisition costs. Insurtech Lemonade Unveils AI‑Driven Insurance for Autonomous Vehicles
• Positive Sentiment: Unusual bullish options flow — Traders bought a material number of call contracts (notable increase vs. average), signalling speculative bullish interest that can amplify moves if the partnership narrative continues to play out.
• Neutral Sentiment: Analyst attention & target resets — Coverage is being refreshed after the Tesla announcement; some analysts are raising targets while others caution gains may be short‑lived unless fundamentals keep improving. How Lemonade Is Rewriting Its Story As Analyst Targets Reset
• Neutral Sentiment: Zacks note on sustainability of the jump — Zacks flagged that heavy volume and estimate revisions drove the recent ~13% jump but warned that the momentum may not immediately extend without follow‑through on estimates. Strength Seen in Lemonade: Can Its 13.1% Jump Turn into More Strength?
• Negative Sentiment: Large insider sales — CEO Daniel Schreiber sold 126,625 shares (~$12.0M at ~$94.74) and another insider (John Sheldon Peters) sold 9,000 shares (~$810k). These sizable, disclosed Form 4 sales can be interpreted as near‑term supply pressure or signal for some investors to take profits. Schreiber SEC Form 4 Peters SEC Form 4
• Negative Sentiment: Execution & regulatory risk — The Tesla product rollout is currently limited and depends on FSD safety metrics and state/regulatory approvals; any setbacks or higher claims could hurt Lemonade’s improved margin story (this is noted in coverage of the deal).

Lemonade Company Profile

Lemonade, Inc (NYSE: LMND) is a New York–based technology-driven insurance carrier that leverages artificial intelligence and behavioral economics to streamline the purchase and management of policies. Founded in 2015, the company offers renters, homeowners, pet, term life and car insurance products tailored for digitally savvy consumers. By automating underwriting and claims processing through chatbots and machine learning, Lemonade aims to deliver a more transparent and user-friendly experience than traditional insurers.

The company’s product suite includes standalone policies for renters and homeowners, customizable pet insurance plans, and term life coverage with simple online applications.