Investors Purchase Large Volume of Call Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw some unusual options trading activity on Thursday. Investors bought 21,181 call options on the company. This is an increase of 15% compared to the average volume of 18,401 call options.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on LMND shares. Piper Sandler set a $65.00 price objective on Lemonade in a research note on Thursday. Truist Financial started coverage on Lemonade in a research note on Tuesday, January 6th. They issued a “buy” rating and a $98.00 price target on the stock. Citizens Jmp set a $80.00 target price on shares of Lemonade in a research report on Monday, November 24th. Citigroup restated an “outperform” rating on shares of Lemonade in a research report on Friday, January 16th. Finally, Keefe, Bruyette & Woods lifted their price objective on Lemonade from $35.00 to $40.00 and gave the stock an “underperform” rating in a research report on Tuesday, November 25th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $71.71.

Lemonade Trading Down 7.2%

Shares of NYSE LMND opened at $57.23 on Friday. The stock has a fifty day moving average price of $77.49 and a 200 day moving average price of $66.22. Lemonade has a 12-month low of $24.31 and a 12-month high of $99.90. The company has a market cap of $4.28 billion, a P/E ratio of -25.32 and a beta of 2.03.

Lemonade (NYSE:LMND) last released its quarterly earnings results on Thursday, February 19th. The company reported ($0.29) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.12. The firm had revenue of $228.10 million for the quarter, compared to analyst estimates of $218.07 million. Lemonade had a negative return on equity of 31.25% and a negative net margin of 22.43%.Lemonade’s revenue for the quarter was up 53.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.42) EPS. On average, sell-side analysts forecast that Lemonade will post -3.03 EPS for the current fiscal year.

Lemonade News Summary

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Q4 beat and strong top-line: Lemonade reported a clearer-than-expected beat on both EPS (loss narrower than expected) and revenue, with FY‑2026 revenue guidance raised above consensus — evidence the growth story is intact. Lemonade Announces Fourth Quarter and Full-Year 2025 Financial Results
• Positive Sentiment: Margin improvement and cash generation: Management highlighted wider gross margins, free cash flow turning positive ($37M) and a moved-up timeline to adjusted‑EBITDA positivity and profitability — a major de‑risk for growth investors. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Positive Sentiment: Bullish flow and investor interest: Heavy pre/post-earnings call option activity (large call purchases) and premarket buying signaled speculative bullishness and helped fuel the earlier jump. Lemonade (LMND) Stock Jumps 17% After Q4 Earnings Beat
• Neutral Sentiment: Analyst/valuation re-check: Coverage notes the upside from results but many houses remain cautious or neutral; MarketBeat shows a mixed analyst consensus and a ~$70 blended target — supportive but not runaway bullish. Lemonade (LMND) Valuation Check After Encouraging Q4 Results And Outlook
• Neutral Sentiment: Product & AI roadmap: Coverage highlights accelerating growth levers (Pet, Car, Europe) and ongoing AI investment (including autonomous car insurance experiments) — long‑term positives that may take quarters to fully monetize. LMND Q4 Deep Dive: Accelerating Growth, Autonomous Car Insurance, and AI Investment Shape 2026 Outlook
• Negative Sentiment: Near-term underwriting headwinds: ADR dipped modestly due to non-renewals of poorly performing policies — improves portfolio quality but can pressure near-term retention/premium metrics. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead
• Negative Sentiment: High short interest and volatility risk: Short interest remains elevated (~18%) and institutional trading has been heavy, so price swings and pullbacks (profit‑taking) are likely until further confirmatory quarters or analyst upgrades. Lemonade’s Sweet Results Refresh Market Appetite: Rebound Ahead

Insider Activity

In other Lemonade news, Director Debra Schwartz sold 4,200 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $83.59, for a total transaction of $351,078.00. Following the sale, the director owned 21,567 shares of the company’s stock, valued at approximately $1,802,785.53. This trade represents a 16.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Daniel A. Schreiber sold 9,108 shares of the business’s stock in a transaction that occurred on Friday, January 23rd. The stock was sold at an average price of $99.04, for a total transaction of $902,056.32. Following the sale, the chief executive officer owned 1,514,426 shares of the company’s stock, valued at $149,988,751.04. This represents a 0.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 250,540 shares of company stock valued at $22,007,574 over the last quarter. Company insiders own 14.70% of the company’s stock.

Institutional Investors Weigh In On Lemonade

Hedge funds have recently bought and sold shares of the business. Federated Hermes Inc. lifted its stake in shares of Lemonade by 195.9% in the 3rd quarter. Federated Hermes Inc. now owns 157,592 shares of the company’s stock worth $8,436,000 after acquiring an additional 104,342 shares during the period. Analyst IMS Investment Management Services Ltd. raised its holdings in Lemonade by 80.7% during the second quarter. Analyst IMS Investment Management Services Ltd. now owns 571,768 shares of the company’s stock worth $25,049,000 after purchasing an additional 255,368 shares in the last quarter. Halter Ferguson Financial Inc. raised its holdings in Lemonade by 101.3% during the third quarter. Halter Ferguson Financial Inc. now owns 575,906 shares of the company’s stock worth $30,828,000 after purchasing an additional 289,803 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of Lemonade by 4.3% during the 2nd quarter. Bank of New York Mellon Corp now owns 160,328 shares of the company’s stock valued at $7,024,000 after purchasing an additional 6,646 shares during the period. Finally, Titleist Asset Management LLC bought a new stake in shares of Lemonade in the 2nd quarter worth $203,000. Institutional investors and hedge funds own 80.30% of the company’s stock.

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.