Lemonade Target of Unusually High Options Trading (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the target of some unusual options trading activity on Wednesday. Investors acquired 15,999 call options on the company. This represents an increase of 84% compared to the average daily volume of 8,693 call options.

Wall Street Analysts Forecast Growth

LMND has been the topic of several analyst reports. JMP Securities reiterated a “market outperform” rating and set a $40.00 target price on shares of Lemonade in a research report on Tuesday, October 15th. Morgan Stanley raised shares of Lemonade from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $23.00 to $42.00 in a report on Wednesday. Piper Sandler raised their target price on shares of Lemonade from $18.00 to $25.00 and gave the stock a “neutral” rating in a research note on Friday, November 1st. Jefferies Financial Group dropped their price target on shares of Lemonade from $15.00 to $14.00 and set an “underperform” rating for the company in a research report on Wednesday, October 9th. Finally, Keefe, Bruyette & Woods downgraded shares of Lemonade from a “market perform” rating to an “underperform” rating and raised their price objective for the company from $18.00 to $21.00 in a research report on Thursday, November 7th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $26.50.

Lemonade Price Performance

Shares of LMND stock traded up $5.50 during mid-day trading on Wednesday, hitting $45.64. The company had a trading volume of 3,807,123 shares, compared to its average volume of 1,696,597. The stock’s 50 day moving average price is $21.13 and its 200-day moving average price is $18.88. Lemonade has a 52-week low of $14.03 and a 52-week high of $46.85. The company has a market capitalization of $3.26 billion, a P/E ratio of -15.19 and a beta of 1.68.

Lemonade (NYSE:LMND) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.95) EPS for the quarter, topping the consensus estimate of ($1.02) by $0.07. The business had revenue of $136.60 million for the quarter, compared to analysts’ expectations of $129.10 million. Lemonade had a negative net margin of 43.51% and a negative return on equity of 32.85%. The business’s quarterly revenue was up 19.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.88) EPS. On average, equities research analysts expect that Lemonade will post -3.05 earnings per share for the current year.

Insider Buying and Selling at Lemonade

In other news, CFO Timothy E. Bixby sold 2,050 shares of the stock in a transaction that occurred on Tuesday, September 10th. The shares were sold at an average price of $18.24, for a total value of $37,392.00. Following the transaction, the chief financial officer now owns 271,552 shares in the company, valued at $4,953,108.48. This represents a 0.75 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Maya Prosor sold 20,000 shares of the business’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $30.00, for a total transaction of $600,000.00. Following the sale, the insider now owns 59,286 shares of the company’s stock, valued at $1,778,580. This trade represents a 25.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 55,604 shares of company stock worth $1,655,085. Insiders own 12.50% of the company’s stock.

Hedge Funds Weigh In On Lemonade

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in LMND. Axiom Advisory LLC increased its stake in Lemonade by 1.6% in the 3rd quarter. Axiom Advisory LLC now owns 54,400 shares of the company’s stock worth $897,000 after acquiring an additional 850 shares during the last quarter. Blue Trust Inc. grew its holdings in shares of Lemonade by 220.0% in the third quarter. Blue Trust Inc. now owns 2,733 shares of the company’s stock valued at $45,000 after purchasing an additional 1,879 shares in the last quarter. Van ECK Associates Corp grew its holdings in shares of Lemonade by 12.1% in the second quarter. Van ECK Associates Corp now owns 17,774 shares of the company’s stock valued at $293,000 after purchasing an additional 1,915 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in Lemonade by 9.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 24,609 shares of the company’s stock worth $404,000 after purchasing an additional 2,196 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its stake in Lemonade by 9.7% during the second quarter. The Manufacturers Life Insurance Company now owns 29,194 shares of the company’s stock valued at $482,000 after purchasing an additional 2,582 shares in the last quarter. 80.30% of the stock is owned by institutional investors.

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.