Investors Purchase High Volume of Put Options on Lemonade (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) was the target of some unusual options trading on Friday. Stock traders purchased 13,999 put options on the company. This is an increase of approximately 20% compared to the typical daily volume of 11,674 put options.

Lemonade Stock Down 10.8 %

NYSE:LMND traded down $4.76 during trading hours on Friday, reaching $39.40. The company had a trading volume of 2,329,626 shares, compared to its average volume of 1,825,758. The business’s 50-day simple moving average is $35.94 and its two-hundred day simple moving average is $24.08. Lemonade has a twelve month low of $14.03 and a twelve month high of $53.85. The firm has a market cap of $2.81 billion, a price-to-earnings ratio of -12.96 and a beta of 2.08.

Lemonade (NYSE:LMND) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.95) EPS for the quarter, beating analysts’ consensus estimates of ($1.02) by $0.07. Lemonade had a negative net margin of 43.51% and a negative return on equity of 32.85%. The business had revenue of $136.60 million during the quarter, compared to analyst estimates of $129.10 million. During the same quarter in the previous year, the business posted ($0.88) EPS. Lemonade’s quarterly revenue was up 19.3% on a year-over-year basis. As a group, equities analysts predict that Lemonade will post -3.04 earnings per share for the current year.

Analysts Set New Price Targets

A number of brokerages have commented on LMND. Keefe, Bruyette & Woods lowered Lemonade from a “market perform” rating to an “underperform” rating and upped their price objective for the company from $18.00 to $21.00 in a report on Thursday, November 7th. Morgan Stanley upgraded shares of Lemonade from an “underweight” rating to an “equal weight” rating and increased their price objective for the stock from $23.00 to $42.00 in a research note on Wednesday, November 20th. Piper Sandler raised their price target on shares of Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research note on Thursday, November 21st. JMP Securities upped their price objective on shares of Lemonade from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research report on Friday, November 22nd. Finally, BMO Capital Markets boosted their target price on shares of Lemonade from $13.00 to $15.00 and gave the stock an “underperform” rating in a research note on Thursday, November 21st. Three research analysts have rated the stock with a sell rating, three have assigned a hold rating and one has issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $30.43.

Insider Activity at Lemonade

In related news, insider John Sheldon Peters sold 1,790 shares of the business’s stock in a transaction that occurred on Tuesday, December 3rd. The stock was sold at an average price of $45.50, for a total transaction of $81,445.00. Following the transaction, the insider now directly owns 88,493 shares of the company’s stock, valued at approximately $4,026,431.50. The trade was a 1.98 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Softbank Group Capital Ltd sold 719,815 shares of the stock in a transaction on Monday, December 16th. The shares were sold at an average price of $44.29, for a total value of $31,880,606.35. Following the completion of the sale, the insider now owns 11,263,569 shares in the company, valued at approximately $498,863,471.01. This trade represents a 6.01 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 871,514 shares of company stock valued at $37,993,527. 12.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Lemonade

Several institutional investors have recently modified their holdings of LMND. Blue Trust Inc. boosted its position in Lemonade by 220.0% in the third quarter. Blue Trust Inc. now owns 2,733 shares of the company’s stock worth $45,000 after purchasing an additional 1,879 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. lifted its position in shares of Lemonade by 321.3% during the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 4,462 shares of the company’s stock worth $74,000 after acquiring an additional 3,403 shares in the last quarter. Quest Partners LLC boosted its holdings in shares of Lemonade by 1,647.6% in the third quarter. Quest Partners LLC now owns 9,105 shares of the company’s stock worth $150,000 after acquiring an additional 8,584 shares during the period. Concurrent Investment Advisors LLC purchased a new position in shares of Lemonade in the second quarter valued at $180,000. Finally, Bristlecone Advisors LLC bought a new stake in shares of Lemonade during the 3rd quarter valued at $218,000. 80.30% of the stock is owned by institutional investors.

Lemonade Company Profile

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.