Traders Purchase Large Volume of Lemonade Put Options (NYSE:LMND)

Lemonade, Inc. (NYSE:LMND) saw unusually large options trading on Friday. Stock investors purchased 13,999 put options on the company. This represents an increase of approximately 20% compared to the average volume of 11,674 put options.

Lemonade Price Performance

Shares of LMND traded down $4.76 during trading hours on Friday, hitting $39.40. The stock had a trading volume of 2,329,626 shares, compared to its average volume of 1,825,758. The firm has a market capitalization of $2.81 billion, a PE ratio of -12.96 and a beta of 2.08. Lemonade has a 12 month low of $14.03 and a 12 month high of $53.85. The stock has a fifty day moving average price of $35.94 and a 200 day moving average price of $24.08.

Lemonade (NYSE:LMND) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.95) EPS for the quarter, beating the consensus estimate of ($1.02) by $0.07. The firm had revenue of $136.60 million during the quarter, compared to analyst estimates 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 revenue for the quarter was up 19.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.88) EPS. As a group, analysts anticipate that Lemonade will post -3.04 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on LMND. Jefferies Financial Group lowered their price objective on Lemonade from $15.00 to $14.00 and set an “underperform” rating for the company in a research report on Wednesday, October 9th. BMO Capital Markets increased their price objective on Lemonade from $13.00 to $15.00 and gave the stock an “underperform” rating in a report on Thursday, November 21st. Piper Sandler boosted their target price on Lemonade from $25.00 to $44.00 and gave the company a “neutral” rating in a research note on Thursday, November 21st. JMP Securities lifted their price target on shares of Lemonade from $40.00 to $60.00 and gave the company a “market outperform” rating in a report on Friday, November 22nd. Finally, Keefe, Bruyette & Woods cut shares of Lemonade from a “market perform” rating to an “underperform” rating and raised their target price for the stock from $18.00 to $21.00 in a research report on Thursday, November 7th. Three investment analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $30.43.

Insider Buying and Selling

In related news, insider John Sheldon Peters sold 1,790 shares of the firm’s stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $45.50, for a total value of $81,445.00. Following the sale, the insider now directly owns 88,493 shares of the company’s stock, valued at $4,026,431.50. This trade represents a 1.98 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, major shareholder Softbank Group Capital Ltd sold 719,815 shares of the firm’s stock in a transaction dated 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 transaction, the insider now directly owns 11,263,569 shares in the company, valued at approximately $498,863,471.01. This represents a 6.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 871,514 shares of company stock worth $37,993,527. Corporate insiders own 12.50% of the company’s stock.

Institutional Investors Weigh In On Lemonade

Hedge funds have recently modified their holdings of the business. Blue Trust Inc. grew its holdings in 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 purchasing an additional 1,879 shares during the period. Point72 Asia Singapore Pte. Ltd. raised its stake in shares of Lemonade by 321.3% in the third quarter. Point72 Asia Singapore Pte. Ltd. now owns 4,462 shares of the company’s stock worth $74,000 after buying an additional 3,403 shares during the period. Quest Partners LLC grew its stake in shares of Lemonade by 1,647.6% during the 3rd quarter. Quest Partners LLC now owns 9,105 shares of the company’s stock valued at $150,000 after acquiring an additional 8,584 shares during the period. Concurrent Investment Advisors LLC purchased a new stake in Lemonade in the 2nd quarter worth approximately $180,000. Finally, Bristlecone Advisors LLC bought a new stake in Lemonade during the 3rd quarter worth approximately $218,000. Institutional investors own 80.30% of the company’s stock.

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.