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

Lemonade, Inc. (NYSE:LMND - Get Free Report)'s share price gapped up before the market opened 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 traded.

The company reported ($0.95) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.02) by $0.07. Lemonade had a negative net margin of 44.24% and a negative return on equity of 30.34%. The company had revenue of $136.60 million for the quarter, compared to the consensus estimate of $129.10 million. During the same period last year, the company earned ($0.88) earnings per share. The firm's revenue was up 19.3% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on LMND shares. JMP Securities restated a "market outperform" rating and issued a $40.00 price objective on shares of Lemonade in a report on Tuesday, October 15th. Jefferies Financial Group decreased their price target on Lemonade from $15.00 to $14.00 and set an "underperform" rating for the company in a research note on Wednesday, October 9th. Two analysts have rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $20.17.

Insider Buying and Selling

In related news, CFO Timothy E. Bixby sold 2,050 shares of the business's stock in a transaction that occurred on Tuesday, September 10th. The stock was sold at an average price of $18.24, for a total transaction of $37,392.00. Following the transaction, the chief financial officer now directly owns 271,552 shares of the company's stock, valued at approximately $4,953,108.48. The trade was a 0.00 % 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. 12.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Lemonade

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Marshall Wace LLP acquired a new position in Lemonade in the 2nd quarter valued at $14,181,000. General Equity Holdings LP acquired a new position in shares of Lemonade in the second quarter valued at about $5,198,000. GSA Capital Partners LLP bought a new position in Lemonade during the first quarter worth about $3,100,000. Millennium Management LLC raised its stake in Lemonade by 388.7% in the 2nd quarter. Millennium Management LLC now owns 165,689 shares of the company's stock worth $2,734,000 after purchasing an additional 131,784 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. raised its stake in Lemonade by 8.8% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 112,938 shares of the company's stock worth $1,853,000 after purchasing an additional 9,107 shares in the last quarter. Institutional investors own 80.30% of the company's stock.

Lemonade Stock Performance

The stock's fifty day simple moving average is $17.87 and its 200-day simple moving average is $17.59. The stock has a market cap of $1.69 billion, a P/E ratio of -8.40 and a beta of 1.77.

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.