Lemonade (NYSE:LMND) Shares Gap Up After Strong Earnings

Lemonade, Inc. (NYSE:LMND) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $65.73, but opened at $74.00. Lemonade shares last traded at $61.8190, with a volume of 2,920,812 shares changing hands.

The company reported ($0.29) EPS for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.12. The firm had revenue of $228.10 million for the quarter, compared to analysts’ expectations of $218.07 million. Lemonade had a negative net margin of 22.43% and a negative return on equity of 31.25%. The firm’s revenue was up 53.3% on a year-over-year basis. During the same period in the prior year, the company earned ($0.42) EPS.

More Lemonade News

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

Analyst Upgrades and Downgrades

Several research firms have weighed in on LMND. Citigroup reissued an “outperform” rating on shares of Lemonade in a research report on Friday, January 16th. Truist Financial initiated coverage on Lemonade in a research report on Tuesday, January 6th. They set a “buy” rating and a $98.00 price objective for the company. Citizens Jmp set a $80.00 target price on shares of Lemonade in a research note on Monday, November 24th. Keefe, Bruyette & Woods upped their target price on shares of Lemonade from $35.00 to $40.00 and gave the company an “underperform” rating in a report on Tuesday, November 25th. Finally, Morgan Stanley set a $85.00 price target on shares of Lemonade and gave the stock an “equal weight” rating in a report on Tuesday, December 16th. Four equities research 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. Based on data from MarketBeat.com, Lemonade presently has an average rating of “Hold” and a consensus price target of $71.71.

Insider Activity at Lemonade

In other Lemonade news, CEO Daniel A. Schreiber sold 9,108 shares of the stock in a transaction that occurred on Friday, January 23rd. The shares were sold at an average price of $99.04, for a total transaction of $902,056.32. Following the transaction, the chief executive officer owned 1,514,426 shares of the company’s stock, valued at $149,988,751.04. This trade represents a 0.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Debra Schwartz sold 4,200 shares of Lemonade stock in a transaction 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 completion of the transaction, the director owned 21,567 shares in the company, valued at approximately $1,802,785.53. This trade represents a 16.30% 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 in the last ninety days. 14.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lemonade

Institutional investors have recently added to or reduced their stakes in the company. TD Waterhouse Canada Inc. raised its holdings in shares of Lemonade by 3.4% in the 4th quarter. TD Waterhouse Canada Inc. now owns 3,671 shares of the company’s stock worth $261,000 after purchasing an additional 121 shares during the period. Watershed Private Wealth LLC increased its position in Lemonade by 1.7% during the 4th quarter. Watershed Private Wealth LLC now owns 8,310 shares of the company’s stock worth $592,000 after purchasing an additional 140 shares in the last quarter. AQR Capital Management LLC raised its holdings in Lemonade by 0.7% in the fourth quarter. AQR Capital Management LLC now owns 21,569 shares of the company’s stock valued at $1,535,000 after buying an additional 159 shares during the period. Titleist Asset Management LLC raised its holdings in Lemonade by 4.1% in the third quarter. Titleist Asset Management LLC now owns 4,832 shares of the company’s stock valued at $259,000 after buying an additional 189 shares during the period. Finally, Wealth Enhancement Advisory Services LLC raised its holdings in Lemonade by 2.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 8,431 shares of the company’s stock valued at $600,000 after buying an additional 219 shares during the period. Hedge funds and other institutional investors own 80.30% of the company’s stock.

Lemonade Price Performance

The business’s 50-day simple moving average is $77.49 and its two-hundred day simple moving average is $66.22. The stock has a market capitalization of $4.28 billion, a price-to-earnings ratio of -25.32 and a beta of 2.03.

About Lemonade

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.