What happened Shares of digital insurance company Lemonade (LMND -7.00%) fell 24% in January according to data provided by S&P Global Market Intelligence. The company's stock has been falling for months, and it was a victim of the broader tech stock sell-off and market volatility that continued into January.
Why is lemonade stock down 11% today?
However, insurance technology disruptor Lemonade ( NYSE:LMND) continued its streak of volatile moves with shares down nearly 11%. There are two main catalysts for today's move. First, Lemonade recently announced plans to sell 3 million new shares, and the company announced pricing of the offering this morning.
Should shareholders be worried about dilution in Lemonade stocks?
When stocks quadruple in a few months like Lemonade has, you'll inevitably run into analysts who say the shares are overpriced. On the matter of dilution, I'm not terribly worried, and shareholders shouldn't be either.
Does Matthew Frankel own lemonade stock?
Matthew Frankel, CFP owns shares of Lemonade, Inc. The Motley Fool owns shares of and recommends Lemonade, Inc. The Motley Fool has a disclosure policy.
How did Lemonade technologies raise capital in 2021?
With major plans for international expansion and a life insurance operation starting in 2021, it'll be able to put the capital to good use. And thanks to the massive rally in Lemonade's share price since its summer 2020 IPO, it was able to raise this capital with far less dilution than would have been required.
Will Lemonade stock recover?
LMND stock does not look like a buy for the near term. But if you have a high-risk appetite and a long-term vision, this stock could be a winner. However, do not expect returns in the near term. It will take a lot of time for LMND stock to recover and start the upward journey.
Should I sell Lemonade stock?
7 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Lemonade in the last year. There are currently 2 sell ratings, 2 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should "hold" Lemonade stock.
Is Lemonade still a good stock?
A stock with high growth potential but also high volatility Lemonade is an intriguing stock that is rapidly adding to its customer base through new products. This year, management expects in-force premiums to be around $530 million and $540 million, while revenue is expected to grow 58% to 60%.
Is Lemonade making a profit?
In 2020, Lemonade received $214.4 million in gross written premiums. Of that, $77.3 million became net earned premiums, which is roughly 36%. Note: 81.9% of Lemonade's total revenue came from Net Premiums Earned in 2020.
How high will LMND stock go?
Stock Price Forecast The 9 analysts offering 12-month price forecasts for Lemonade Inc have a median target of 24.00, with a high estimate of 56.00 and a low estimate of 15.00. The median estimate represents a +6.71% increase from the last price of 22.49.
Is lemonade undervalued?
The current year Enterprise Value is expected to grow to about 3 B, whereas Free Cash Flow is forecasted to decline to (158.1 M). Lemonade secures a last-minute Real Value of $27.99 per share. The latest price of the firm is $19.15. At this time, the firm appears to be undervalued.
Is LMND a meme stock?
The truth is that not all meme stocks are to be treated as pariahs. Take Lemonade (NYSE: LMND) and Beyond Meat, for example. In June 2021, these two got caught up in yet another Reddit-induced mania, sending share prices soaring.
How much cash does lemonade have?
Compare LMND With Other StocksLemonade Annual Cash on Hand (Millions of US $)2021$2712020$5712019$2702018$
Why Lemonade is not profitable?
The Long Path To Profitability Is A Risk While top line growth is exciting for investors, Lemonade's largest risk to investors comes from its lack of bottom line production.
Who invests in Lemonade?
In April 2019, Lemonade announced a further $300 million investment in a Series D financing led by SoftBank Group, with participation from Allianz, General Catalyst, GV, OurCrowd, and Thrive Capital, increasing the total money raised by the company to $480 million.
How many users does Lemonade have?
Lemonade Customer Base Now Surpasses 1.2M; Q2 Losses Land Above $55M. Lemonade's customer base continues to climb in the 2021 second quarter, with that number now surpassing 1.2 million. In contrast, the New York-based digital insurer reported nearly 814,200 customers at the end of its 2020 second quarter.
What happened
Shares of digital insurance company Lemonade ( LMND -7.40% ) fell 24% in January according to data provided by S&P Global Market Intelligence. The company's stock has been falling for months, and it was a victim of the broader tech stock sell-off and market volatility that continued into January.
So what
Lemonade disappointed investors in 2021. It posted a huge loss ratio in last year's first quarter after the Texas freeze, when there was a severe storm that caused tremendous damage in one of Lemonade's biggest markets.
Now what
Lemonade stock has been a pretty terrible performer as investors lose confidence in its prospects. But I don't see all this fear as warranted. Lemonade is dealing with growing pains, which are normal for a company at its stage. It's not a value stock, and investors shouldn't view it as such.
What happened
Shares of Lemonade (NYSE: LMND), an online-based insurance company, were tumbling today as Treasury yields rose, putting pressure on growth stocks.
So what
Lemonade is a unique company that uses artificial intelligence to find insurance policies for potential customers. This puts Lemonade in the fast-growing technology sector and, because of its insurance policies, ties it to the broader financial sector as well.
Now what
Long-term Lemonade investors would do well not to get caught up in today's sell-off. Nothing fundamentally changed about Lemonade's business today, nor did the company make any big announcement.
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There are two catalysts potentially driving the stock lower
Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy
What happened
The stock market was largely flat on Thursday, with the S&P 500 index up by about 0.2% as of 12:50 p.m. EST. However, insurance technology disruptor Lemonade ( NYSE:LMND) continued its streak of volatile moves with shares down nearly 11%.
So what
There are two main catalysts for today's move. First, Lemonade recently announced plans to sell 3 million new shares, and the company announced pricing of the offering this morning. Not only did the offering price at $165 per share (the stock closed at nearly $177 on Wednesday), but at 3.3 million shares, it was bigger than expected.
Now what
The tweet by Citron is market noise and isn't terribly material to investors -- especially those with a long-term focus. When stocks quadruple in a few months like Lemonade has, you'll inevitably run into analysts who say the shares are overpriced.
What happened
Lemonade (NYSE: LMND) released its second-quarter earnings report on Wednesday after the market closed. Revenue came in at $28.2 million, slightly ahead of Wall Street's expectations. But the company posted a widening net loss of $55.6 million, or $0.90 per diluted share, which sent the stock tumbling after hours.
So what
Despite Wall Street's reaction, Lemonade's latest earnings report shows promise. In-force premiums (IFP), the annualized sum of all customer premiums, accelerated for the second consecutive quarter, jumping 91% to $297 million, showing robust demand. And Lemonade's customer count hit 1.2 million, up 48% from the prior year.
Now what
For what it's worth, I am a Lemonade shareholder and I remain bullish on this company. It's never fun to watch a stock drop 7% in one week, but those types of swings are unavoidable with unprofitable tech companies.
Lemonade earnings were actually good
In this video, I will go over Lemonade 's ( NYSE:LMND) Q1 earnings report and talk about why this was actually a promising report, seeing as it raised guidance even after the whole Texas freeze event.
Earnings highlights
As reported, IFP growth accelerated to 89% YoY with IFP of $252 million, and about 1.1 million customers. Premium per customer increased 25% YoY to $229. Gross Earned Premium increased 84% YoY to $56 million.
Car and life
Investors will have to wait until we get to see the effects of Term Life and Car Insurance. Life is still in its early days and Lemonade is still testing and iterating on the product experience to ensure it is both fantastic and delightful.
High loss ratio (Texas freeze)
Loss ratio increased 68% to 121% because of the Texas freeze. "We received about a year's worth of claims in its first few days, providing an extreme stress test for both our operations and financial model." Yet EBITDA guidance for the year remains substantially in line with analyst consensus prior to the storm.
It looks like the stock's recent momentum could be running out, at least for now
Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy
What happened
The stock market was having a negative day on Friday, but insurance technology stock Lemonade ( NYSE:LMND) was a big underperformer. As of 10:50 a.m. EST, Lemonade's shares were down by 7% after falling by as much as 10% earlier in the session. This is the second consecutive day of sharp declines for the insurance stock.
So what
There doesn't appear to be any new company-specific news driving the insurance stock lower. Rather, this appears to be a continuation of the pullback in the stock following several months of tremendous performance, a recent stock offering, and a negative short-seller report.
Now what
The move in Lemonade's stock price today (and yesterday) isn't based on anything too concerning for long-term investors. As I wrote a few days ago, it would be questionable if Lemonade didn't raise capital after such a rise in its stock price.
