Lemonade (NYSE:LMND) Shares Gap Up After Better-Than-Expected Earnings

Lemonade, Inc. (NYSE:LMND) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $18.75, but opened at $20.88. Lemonade shares last traded at $22.72, with a volume of 1,258,140 shares changing hands.

The company reported ($0.95) earnings per share 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 44.24% and a negative return on equity of 30.34%. The firm’s revenue for the quarter was up 19.3% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.88) earnings per share.

Wall Street Analysts Forecast Growth

LMND has been the topic of several research analyst reports. JMP Securities reissued a “market outperform” rating and issued a $40.00 price objective on shares of Lemonade in a research report on Tuesday, October 15th. Jefferies Financial Group cut their price target on shares of Lemonade from $15.00 to $14.00 and set an “underperform” rating on the stock in a report on Wednesday, October 9th. Two analysts have rated the stock with a sell rating, four have given a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat.com, Lemonade currently has a consensus rating of “Hold” and a consensus price target of $20.17.

Insider Buying and Selling at Lemonade

In related news, CFO Timothy E. Bixby sold 2,050 shares of the firm’s 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 completion of the transaction, the chief financial officer now directly owns 271,552 shares of the company’s stock, valued at approximately $4,953,108.48. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 12.50% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Blue Trust Inc. increased its position in shares of Lemonade by 220.0% during the third quarter. Blue Trust Inc. now owns 2,733 shares of the company’s stock valued at $45,000 after buying an additional 1,879 shares during the period. Concurrent Investment Advisors LLC purchased a new position in shares of Lemonade during the 2nd quarter valued at $180,000. Capstone Investment Advisors LLC bought a new position in shares of Lemonade in the first quarter worth $214,000. Bristlecone Advisors LLC bought a new position in shares of Lemonade in the third quarter worth $218,000. Finally, Headlands Technologies LLC purchased a new stake in shares of Lemonade in the first quarter worth $231,000. Institutional investors own 80.30% of the company’s stock.

Lemonade Price Performance

The company has a 50 day moving average of $18.00 and a 200-day moving average of $17.63. The company has a market cap of $1.69 billion, a P/E ratio of -8.00 and a beta of 1.77.

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.