Lemonade (NYSE:LMND) Receives “Equal Weight” Rating from Morgan Stanley

Morgan Stanley reiterated their equal weight rating on shares of Lemonade (NYSE:LMND) in a research note issued to investors on Wednesday morning, MarketBeat Ratings reports. The brokerage currently has a $75.00 price objective on the stock.

A number of other brokerages have also commented on LMND. Truist Financial cut their price objective on shares of Lemonade from $98.00 to $70.00 and set a “buy” rating for the company in a research report on Wednesday, April 29th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Lemonade in a research note on Tuesday, May 26th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lemonade in a research report on Tuesday, April 21st. UBS Group set a $75.00 price objective on shares of Lemonade in a report on Thursday, May 21st. Finally, Piper Sandler dropped their target price on shares of Lemonade from $65.00 to $62.00 and set a “neutral” rating on the stock in a report on Thursday, April 30th. Four investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $65.33.

Lemonade Stock Down 8.6%

LMND opened at $70.89 on Wednesday. The firm has a market cap of $5.45 billion, a PE ratio of -37.91 and a beta of 1.79. The business has a fifty day simple moving average of $58.64 and a 200-day simple moving average of $65.18. Lemonade has a fifty-two week low of $35.70 and a fifty-two week high of $99.90.

Lemonade (NYSE:LMND) last announced its earnings results on Tuesday, April 28th. The company reported ($0.47) EPS for the quarter, topping the consensus estimate of ($0.58) by $0.11. Lemonade had a negative net margin of 16.44% and a negative return on equity of 26.52%. The company had revenue of $258.00 million during the quarter, compared to analysts’ expectations of $251.51 million. During the same period last year, the company posted ($0.86) earnings per share. The business’s revenue for the quarter was up 70.6% on a year-over-year basis. On average, equities research analysts anticipate that Lemonade will post -1.71 EPS for the current fiscal year.

Insider Activity at Lemonade

In related news, insider Maya Prosor sold 1,220 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $53.17, for a total value of $64,867.40. Following the completion of the sale, the insider directly owned 187,573 shares in the company, valued at approximately $9,973,256.41. The trade was a 0.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Sheldon Peters sold 3,444 shares of the firm’s stock in a transaction on Monday, July 6th. The stock was sold at an average price of $79.00, for a total value of $272,076.00. Following the transaction, the insider owned 77,942 shares in the company, valued at approximately $6,157,418. This trade represents a 4.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 10,007 shares of company stock valued at $620,201. 14.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Lemonade

Several large investors have recently bought and sold shares of LMND. Bank of America Corp DE boosted its holdings in shares of Lemonade by 52.1% during the 1st quarter. Bank of America Corp DE now owns 360,411 shares of the company’s stock valued at $22,591,000 after acquiring an additional 123,484 shares in the last quarter. Edgestream Partners L.P. acquired a new stake in Lemonade in the first quarter valued at approximately $814,000. California State Teachers Retirement System raised its holdings in Lemonade by 22.5% during the first quarter. California State Teachers Retirement System now owns 72,887 shares of the company’s stock worth $4,569,000 after buying an additional 13,411 shares during the last quarter. Royal Bank of Canada lifted its position in Lemonade by 148.5% in the 1st quarter. Royal Bank of Canada now owns 31,328 shares of the company’s stock valued at $1,964,000 after acquiring an additional 18,721 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its holdings in Lemonade by 9.3% during the first quarter. The Manufacturers Life Insurance Company now owns 35,439 shares of the company’s stock worth $2,221,000 after buying an additional 3,008 shares in the last quarter. 80.30% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Lemonade

Here are the key news stories impacting Lemonade this week:

• Positive Sentiment: Lemonade expanded its renters insurance product into Vermont, broadening its addressable market and reinforcing its push to scale its tech-driven insurance platform. Lemonade Expands Renters Insurance to Vermont
• Positive Sentiment: Morgan Stanley reaffirmed its equal weight rating and set a $75 price target, suggesting modest upside from recent trading levels. Morgan Stanley Reaffirms Equal Weight Rating
• Neutral Sentiment: Zacks highlighted Lemonade’s strong 88.7% share gain over the past year, citing AI-driven growth and improving underwriting, but also noting that the stock’s valuation remains rich. Lemonade Stock Surges 88.7% in a Year: How Should You Play the Stock?
• Neutral Sentiment: Keefe, Bruyette & Woods raised its price target to $48 but kept an underperform rating, signaling that the firm still sees meaningful downside after the recent rally. Keefe, Bruyette & Woods Raises Target but Keeps Underperform
• Negative Sentiment: Insider John Sheldon Peters sold 3,444 shares, a transaction that can be read as a lack of near-term conviction and may add to pressure on LMND. John Sheldon Peters Insider Sale
• Negative Sentiment: A market commentary piece said the stock is no longer a buy after its sharp run-up, with valuation now viewed as fairly priced rather than cheap. Why Lemonade Stock Wilted by Almost 9% on Wednesday

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.