Lemonade (NYSE:LMND) Shares Gap Up – Should You Buy?

Lemonade, Inc. (NYSE:LMND)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $36.12, but opened at $38.00. Lemonade shares last traded at $40.83, with a volume of 844,010 shares traded.

Analyst Upgrades and Downgrades

LMND has been the topic of several recent research reports. Piper Sandler raised their target price on Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a report on Thursday, November 21st. BMO Capital Markets raised their price objective on Lemonade from $13.00 to $15.00 and gave the company an “underperform” rating in a research note on Thursday, November 21st. JMP Securities boosted their target price on Lemonade from $40.00 to $60.00 and gave the stock a “market outperform” rating in a report on Friday, November 22nd. Morgan Stanley upgraded Lemonade from an “underweight” rating to an “equal weight” rating and increased their price target for the company from $23.00 to $42.00 in a report on Wednesday, November 20th. Finally, Keefe, Bruyette & Woods cut shares of Lemonade from a “market perform” rating to an “underperform” rating and boosted their price objective for the stock from $18.00 to $21.00 in a research note on Thursday, November 7th. Three equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, Lemonade has an average rating of “Hold” and an average target price of $32.67.

Lemonade Trading Up 6.3 %

The stock has a fifty day simple moving average of $36.21 and a 200-day simple moving average of $28.51. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of -12.63 and a beta of 2.15.

Insider Buying and Selling

In other news, 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 transaction, the insider now owns 11,263,569 shares in the company, valued at approximately $498,863,471.01. This represents a 6.01 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider John Sheldon Peters sold 28,985 shares of the firm’s stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $38.67, for a total transaction of $1,120,849.95. Following the transaction, the insider now directly owns 69,508 shares of the company’s stock, valued at $2,687,874.36. The trade was a 29.43 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 823,301 shares of company stock valued at $36,550,924 over the last three months. 12.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in LMND. JPMorgan Chase & Co. boosted its holdings in Lemonade by 2,627.9% during the fourth quarter. JPMorgan Chase & Co. now owns 1,349,356 shares of the company’s stock valued at $49,494,000 after purchasing an additional 1,299,891 shares in the last quarter. Two Sigma Investments LP bought a new position in shares of Lemonade during the 4th quarter worth approximately $22,066,000. Voloridge Investment Management LLC acquired a new stake in Lemonade in the 4th quarter valued at $21,310,000. Two Sigma Advisers LP bought a new stake in Lemonade in the fourth quarter valued at $15,412,000. Finally, Connor Clark & Lunn Investment Management Ltd. raised its stake in Lemonade by 402.5% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 275,161 shares of the company’s stock worth $10,093,000 after acquiring an additional 220,399 shares in the last quarter. Institutional investors and hedge funds own 80.30% of the company’s stock.

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.