why lemonade stock is down today

There is no obvious reason for today's price action. What happened Shares of the insurtech firm Lemonade (LMND 5.34%) traded nearly 3% down as of 11:20 a.m. ET for no obvious reason, other than the continued struggle of financial technology stocks in the broader market.

Full Answer

Why has Lemonade stock fallen?

Much of Lemonade's high volatility is down to the fact that it's an unprofitable company that came into the year with an aggressive price-to-sales ratio above 23.

Is now a good time to buy Lemonade 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%.

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 undervalued?

Lemonade secures a last-minute Real Value of $26.54 per share. The latest price of the firm is $16.17. At this time, the firm appears to be undervalued.

Is lemonade Inc A Good Investment?

On the positive side, Lemonade continues to report excellent growth in premiums, revenue, customers, and average premium per customer, is seeing strong traction with their car insurance product, and trades at their lowest relative valuation since IPO.

Will Lemonade go up?

Lemonade's growth is truly an ocean of opportunity, even if the insurance industry is highly competitive. It grew its customer count 45% year over year in the 2021 third quarter, showing that Lemonade is succeeding at bringing customers on board.

What is the future of LMND?

Lemonade Inc (NYSE:LMND) 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 +44.14% increase from the last price of 16.65.

Will lemonade become profitable?

Assuming LMND maintains its 43% gross margin profile (as a ratio of revenues), LMND might earn $415 million in gross profits by 2026. What can we expect for long term margins? The bullish thesis hinges on LMND becoming not just profitable, but more profitable than insurance competitors.

Is now a good time to buy in the stock market?

The recent volatile price action in the stock market has been scary for some investors, especially younger ones just dipping their toes into putting money away for the long-term. Still, financial experts say that now is a good time for people to start investing or to continue to add money into stocks.

What happened

The stock market was having a fairly strong day on Tuesday with all three major averages in positive territory. But insurance disruptor Lemonade ( LMND -7.40% ) was a big underperformer, with shares down by 3.5% at 12:30 p.m. EDT today.

So what

Although earnings season just got underway, that isn't the reason for today's move. Instead, the main force driving Lemonade's stock lower is an analyst's note. Specifically, an analyst from Barclays ( BCS -0.47% ) lowered the price target on Lemonade from $80 to $68.

Now what

To reiterate, today's move doesn't have anything to do with Lemonade's actual insurance business -- just an analyst's perception of it. So take this action with a big grain of salt, and maybe even look at it as a buying opportunity if your level of conviction in the stock hasn't changed.

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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Is lemonade still testing?

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. As for the much anticipated Car Insurance, the company has not yet announced a launch date, and guidance currently contemplates no material contribution from car insurance.

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What happened

Shares of the insurtech firm Lemonade (NYSE: LMND) traded nearly 3% down as of 11:20 a.m. ET for no obvious reason, other than the continued struggle of financial technology stocks in the broader market.

So what

Lemonade went public last year and wowed investors with its artificial intelligence capabilities that could process applications, make decisions, and pay out insurance claims very quickly. At its high, Lemonade traded at nearly $164 a share. Since then, investors have soured on the stock, with its share price now around $51.

Now what

Recent turbulence in the market from inflation, the new omicron variant, and what may be ahead for the stock market in 2022 has placed more emphasis on valuation.

What happened

Shares of Lemonade ( LMND -7.40% ) fell 7% on Thursday, extending the sharp decline in the artificial intelligence (AI)-powered insurance company's stock price since its fourth-quarter earnings report on Monday.

So what

Lemonade's customer count jumped 56% year over year to more than 1 million. It also saw its premium per customer rise by 20%, to $213. Together, this helped to fuel an 87% surge in Lemonade's in force premium (IFP) -- essentially, the aggregate annualized premiums paid by customers with active insurance policies -- to $213 million.

NYSE: LMND

Lemonade's shares have shed more than a quarter of their value in recent days. Image source: Getty Images.

Now what

Despite what the recent performance of its shares would suggest, Lemonade has a bright future. By using artificial intelligence to provide fast online price quotes at competitive rates to prospective customers, Lemonade is rapidly gaining share in the massive U.S. insurance market.

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