Lemonade Inc. (NYSE: LMND) stock fell -1.00% on Friday to $12.87 against a previous-day closing price of $13.00. With 2.41 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.55 million shares. During the session, the Insurance – Property & Casualty company that operates in wider Financial sector, reached to the highest price of $13.07 whereas the lowest price it dropped to was $12.62. The 52-week range on LMND shows that it touched its highest point at $25.45 and its lowest point at $10.28 during that stretch. It currently has a 1-year price target of $18.44. Beta for the stock currently stands at 1.56.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LMND was down-trending over the past week, with a drop of -1.23%, but this was down by -10.81% over a month. Three-month performance dropped to -35.75% while six-month performance fell -8.46%. The stock lost -46.35% in the past year, while it has lost -5.92% so far this year. A look at the trailing 12-month EPS for LMND yields -4.20 with Next year EPS estimates of -3.26. For the next quarter, that number is -0.94. This implies an EPS growth rate of -16.40% for this year and 11.40% for next year. EPS is expected to grow by 19.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -48.30%.
Float and Shares Shorts:
At present, 69.53 million LMND shares are outstanding with a float of 50.22 million shares on hand for trading. On Aug 30, 2023, short shares totaled 15.45 million, which was 22.17% higher than short shares on Jul 30, 2023. In addition to Mr. Daniel Asher Schreiber as the firm’s Co-Founder, Chairman & Co-CEO, Mr. Shai Wininger Gavish serves as its Co-Founder, Pres, Co-CEO, CTO & Director.
Through their ownership of 35.77% of LMND’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.85% of LMND, in contrast to 53.69% held by mutual funds. Shares owned by individuals account for 29.10%. As the largest shareholder in LMND with 8.06% of the stake, The Vanguard Group, Inc. holds 5,615,614 shares worth 5,615,614. A second-largest stockholder of LMND, Baillie Gifford & Co., holds 4,769,662 shares, controlling over 6.84% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in LMND, holding 3,078,638 shares or 4.42% stake. With a 6.65% stake in LMND, the Man Funds VI Plc – GLG Event Driv is the largest stakeholder. A total of 4,634,314 shares are owned by the mutual fund manager. The Vanguard US Growth Fund, which owns about 3.23% of LMND stock, is the second-largest Mutual Fund holder. It holds 2,251,312 shares valued at 30.98 million. Vanguard Total Stock Market ETF holds 2.96% of the stake in LMND, owning 2,060,137 shares worth 28.35 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LMND since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With LMND analysts setting a high price target of $40.00 and a low target of $8.00, the average target price over the next 12 months is $18.00. Based on these targets, LMND could surge 210.8% to reach the target high and fall by -37.84% to reach the target low. Reaching the average price target will result in a growth of 39.86% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded LMND stock several times over the past three months with 3 Buys and 1 Sells. In these transactions, 44,200 shares were bought while 5,000 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 262,850 while 11,997,269 shares were sold.