As of Tuesday, Lemonade Inc.’s (NYSE:LMND) stock closed at $16.28, up from $15.30 the previous day. While Lemonade Inc. has overperformed by 6.41%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, LMND fell by -43.39%, with highs and lows ranging from $34.50 to $12.82, whereas the simple moving average fell by -20.29% in the last 200 days.
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On January 20, 2023, BMO Capital Markets started tracking Lemonade Inc. (NYSE: LMND) recommending Underperform. A report published by Keefe Bruyette on November 17, 2022, Initiated its previous ‘Mkt Perform’ rating for LMND. Piper Sandler also Downgraded LMND shares as ‘Neutral’, setting a target price of $20 on the company’s shares in a report dated July 18, 2022. Jefferies Initiated an Underperform rating on November 19, 2021, and assigned a price target of $49. Wolfe Research initiated its ‘Underperform’ rating for LMND, as published in its report on August 17, 2021. Credit Suisse’s report from April 28, 2021 suggests a price prediction of $56 for LMND shares, giving the stock a ‘Underperform’ rating. BofA Securities also rated the stock as ‘Underperform’.
Analysis of Lemonade Inc. (LMND)
Further, the quarter-over-quarter increase in sales is 107.30%, showing a positive trend in the upcoming months.
One of the most important indicators of Lemonade Inc.’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of -33.30% is sufficient for you to turn a profit off your investment.
For any stock, average volume can also provide valuable insight into volatility, and LMND is recording 981.01K average volume. On a monthly basis, the volatility of the stock is set at 6.48%, whereas on a weekly basis, it is put at 7.02%, with a gain of 8.24% over the past seven days. Furthermore, long-term investors anticipate a median target price of $20.06, showing growth from the present price of $16.28, which can serve as yet another indication of whether LMND is worth investing in or should be passed over.
How Do You Analyze Lemonade Inc. Shares?
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 30.33%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 34.00% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in LMND shares?
The recent increase in stakes in LMND appears to be a result of several institutional investors and hedge funds increasing their positions. Baillie Gifford & Co.’s position in LMND has decreased by -0.85% in the first quarter. The company now owns 4,891,204 shares of the stock, with a value of $66.91 million, following the sale of -42,078 additional shares during the last quarter. The Vanguard Group, Inc. made another decreased to its shares in LMND during the first quarter, downing its stake by -20.91%. During the last quarter, the company dropped down -1,083,650 additional shares for a total stake of worth $56.06 million, bringing number of shares owned by the company to 4,097,838.
During the first quarter, BlackRock Fund Advisors subtracted a -424,503 position in LMND. SSgA Funds Management, Inc. sold an additional -0.15 million shares in the last quarter, decreasing its holdings by -14.04%, now holding 0.89 million shares worth $12.15 million. At the end of the first quarter, Geode Capital Management LLC decreased its LMND holdings by -24.07% and now holds 0.81 million LMND shares valued at $11.07 million with the lessened -0.26 million shares during the period. LMND shares are owned by institutional investors to the tune of 34.00% at present.
