Latest news with #LMND
Yahoo
3 days ago
- Business
- Yahoo
Why Lemonade Stock Raced More Than 9% Higher Today
Key Points Two analysts weighed in with fresh takes on the company. One initiated coverage with a buy, and the other upped his price target. 10 stocks we like better than Lemonade › The stock market was hardly sour on Lemonade (NYSE: LMND) stock on Wednesday. On the back of two positive analysts moves on the next-generation insurer, its share price zoomed to an over 9% gain during that day's trading session. In reaching that height it blew past the S&P 500 index, which only mustered a 0.3% increase. Boosting the buy case Of the pair, one was an initiation of coverage, and the other a price target increase by a researcher that's been following Lemonade stock for some time. The initiating individual was Cantor Fitzgerald's Ryan Tunis, who after market close Tuesday launched coverage of Lemonade with an overweight (buy, in other words) recommendation. Tunis set his price target at $60 per share for the stock. The following day, Jefferies' Andrew Andersen raised his existing price target on the shares. He now believes they are worth $37 apiece, quite some distance north of his previous $30 estimation. That was the good news for Lemonade; the bad is that Andersen left his underperform (sell) rating unchanged. According to reports, the analyst's bump was due in no small to the company's higher premium retention; this should spur revenue growth for the company. On the down side, Andersen expressed concern that Lemonade was taking on more leverage, an activity that can hamper fundamentals if not managed effectively. Not yet tasting good While Lemonade is an innovative company in numerous ways, personally I'd be concerned about its propensity for bottom-line losses. Until and when it can prove that it can not only book a profit but do so with some consistency, I will remain wary of the stock. Should you buy stock in Lemonade right now? Before you buy stock in Lemonade, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lemonade wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and Lemonade. The Motley Fool has a disclosure policy. Why Lemonade Stock Raced More Than 9% Higher Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
If You'd Invested $1,000 in Lemonade Stock (LMND) 3 Years Ago, Here's How Much You'd Have Today
Key Points Lemonade uses AI to run a disruptive insurance business. As the models improve and growth remains high, the market is getting more excited about Lemonade stock. 10 stocks we like better than Lemonade › Insurance company Lemonade (NYSE: LMND) has been trouncing the market recently. It's up 220% over the past year as of Aug. 20, while the market is up only 21% at the same time. It's a huge change from the pessimism of the past few years. Let's see how much money you'd have if you'd invested $1,000 three years ago in Lemonade. A great concept is finally taking off Lemonade captured market attention when it went public in July 2020 because it offers a disruptive, tech-based insurance model that's refreshingly different. It uses artificial intelligence (AI) and machine learning to price policies, and it uses chatbots to onboard customers and process claims. It's a digital insurance solution for a changing world, and it's used AI to drive its business since it began operating a decade ago, well before AI became the buzzword of the day. Although it's been growing by leaps and bounds, with high customer additions and increasing premiums, Lemonade has had trouble establishing profitability. Insurance companies have a distinct model, since they pay claims from premiums, and the loss ratio tracks how much is being paid out. It has taken time for Lemonade to get its algorithms to work. That, along with high rollout expenses that have eaten away profits, has dragged on the stock. It's been and up and down over the past few years as the market began to lose patience, and even today, it's still 72% off of its all-time highs. Investors who recognized the opportunity to buy on the dip have been rewarded. If you bought stock a year ago, when it was still close to all-time lows, your investment has more than tripled. But if you invested $1,000 three years ago, you'd still be still beating the market, with more than $1,700. If you're worried you've missed the Lemonade gains, don't be. The company has lots of opportunity ahead. Should you invest $1,000 in Lemonade right now? Before you buy stock in Lemonade, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lemonade wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Jennifer Saibil has positions in Lemonade. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy. If You'd Invested $1,000 in Lemonade Stock (LMND) 3 Years Ago, Here's How Much You'd Have Today was originally published by The Motley Fool
Yahoo
09-08-2025
- Business
- Yahoo
Lemonade Just Soared After Earnings -- Could It Reach $100 per Share Within the Next Year?
Key Points Lemonade reported excellent second-quarter earnings that handily beat expectations. Not only is growth accelerating, but Lemonade's loss ratio continues to improve. If management can keep executing on the growth strategy, a $100 price tag isn't out of the question. 10 stocks we like better than Lemonade › Lemonade (NYSE: LMND) recently popped by about 25% after reporting its second-quarter results. The insurance disruptor reported better-than-expected revenue and earnings, raised its guidance, and is doing a great job of becoming more profitable. It is doing an excellent job of underwriting, and to put it mildly, the relatively new car insurance product is gaining serious traction. However, with the stock close to a multiyear high, could Lemonade keep climbing? Here's a rundown of how the business is doing and why I think there's a realistic possibility the stock could double to $100 in the not-too-distant future. Lemonade's excellent growth A glance at Lemonade's second-quarter results shows why the stock jumped higher. In-force premium increased by 29% year over year to $1.08 billion and represented the seventh consecutive quarter of accelerating growth. The insurance company now has nearly 2.7 million customers, 24% more than a year ago. Profitability is clearly moving in the right direction. Lemonade produced a $6 million positive operating cash flow compared with a $12 million loss a year ago. Both revenue and earnings per share came in better than analysts had expected, and gross profit more than doubled on a year-over-year basis. The company's most exciting future growth vertical (Lemonade Car) is showing impressive progress, with in-force premium up by 12% sequentially and a 13-percentage-point improvement in loss ratio compared with a year ago. Plus, Lemonade's European business has emerged as a high-potential growth engine, with in-force premium roughly tripling year over year. Starting to look like a great insurance company My biggest complaint about Lemonade throughout most of its publicly traded history had been that the company wasn't doing a great job of underwriting. Loss ratios weren't anywhere near management's stated 75% target for a long time, and it seemed that every time a natural disaster happened, it completely derailed any progress that had been made. However, over the past two years, the company has made tremendous progress in this area. Of course, there is some seasonality that is to be expected in the insurance business (certain disasters tend to happen in certain seasons), but on a trailing-12-month basis, the trend is clear. In fact, over the past four quarters, Lemonade's gross loss ratio is significantly below where management hoped to get it. Quarter Trailing-12-Month Gross Loss Ratio Q3 2023 88% Q4 2023 85% Q1 2024 83% Q2 2024 79% Q3 2024 77% Q4 2024 73% Q1 2025 73% Q2 2025 70% Data source: Lemonade. Could Lemonade stock reach $100? As of this writing, Lemonade trades for right around $50 per share, which is just below a three-year high. The last time the stock had a price tag this high was in late 2021 when interest rates were still at near-zero levels. To be perfectly clear, even though Lemonade is well below its all-time high (which was about $188 in early 2021), it is a much stronger business today. And the recent gains are well deserved. For Lemonade to reach $100 per share implies a market cap of about $7.3 billion. While I don't necessarily think it will happen right away, if Lemonade can keep its growth going, produce strong underwriting numbers (even when natural disasters happen), and keep overall profitability heading in the right direction, it's certainly possible. After all, the market opportunity is simply massive (especially in auto insurance), and strong momentum could lead to strong stock performance. Should you invest $1,000 in Lemonade right now? Before you buy stock in Lemonade, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lemonade wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,108,033!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Matt Frankel has positions in Lemonade. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy. Lemonade Just Soared After Earnings -- Could It Reach $100 per Share Within the Next Year? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-08-2025
- Business
- Yahoo
1 Brilliant Artificial Intelligence (AI) Stock Down 70% You Might Regret Not Buying on the Dip in August
Key Points Lemonade is an insurance technology company, and artificial intelligence (AI) is at the core of everything it does. Lemonade stock surged by 30% on Aug. 5, after the company revealed a stellar set of operating results for the second quarter of 2025. The stock remains 70% below its 2021 record high, but a full recovery is looking increasingly likely. 10 stocks we like better than Lemonade › Last week, I predicted Lemonade (NYSE: LMND) stock would surge once the company released its operating results for the second quarter of 2025 (ended June 30) on Aug. 5. It rocketed higher by 30% on the day, thanks to a spectacular report that showed continued momentum across the business. Lemonade sells insurance, but with a twist: It relies on artificial intelligence (AI) to write quotes, process claims, and even price premiums, creating a faster, more convenient experience compared to traditional insurance companies. Despite its recent gains, Lemonade stock is still trading 70% below its record high from 2021, when a frenzy in the technology sector drove its valuation to unsustainable heights. However, the company believes it can grow its business tenfold over the next decade, so the recent upside in its stock could have serious legs. Lemonade's customer base is growing rapidly Lemonade operates in the renters, homeowners, pet, life, and car insurance markets. Prospective customers who want a quote can visit its website and speak to an AI chatbot named Maya, which can provide one in under 90 seconds. Existing policyholders who need to make a claim can go through AI Jim, which can pay them out in less than three minutes without human intervention. Lemonade's approach is in stark contrast to the processes at traditional insurance companies, especially when it comes to claims, which often require several phone calls and lengthy waiting periods. Its popularity is soaring as a result; Lemonade had a record 2.7 million customers at the end of the second quarter, which was up 24% from the year-ago period. That growth rate marked an acceleration from its first-quarter result of 21%, which highlights the company's momentum. Further, Lemonade's in-force premium (IFP, or the combined value of premiums from all outstanding policies) reached a record high of $1.08 billion in Q2, representing a 29% year-over-year increase. That was the seventh straight quarter in which IFP growth accelerated. But there is more to Lemonade's success than its fantastic customer experience. The company's Lifetime Value (LTV) models, which are powered by AI, calculate the likelihood of a customer making a claim, switching insurers, and even buying multiple policies, in order to charge the most accurate premiums. These models also identify products and geographic markets that are underperforming, so management can pivot its operating costs to maximize revenue. Lemonade significantly increased its revenue guidance for 2025 Lemonade's soaring IFP wouldn't mean much without a sustainable gross loss ratio, which is the proportion of premiums paid out as claims. The company believes a gross loss ratio of 75% is the sweet spot for a thriving insurance business, and it came in at an even better level of 70% during the second quarter. When IFP increases and gross losses decline, the net result is more revenue. After discounting the premiums Lemonade paid to other insurers to reduce risk, its revenue came in at a record $164.1 million during Q2, which was up 35% year over year. That was comfortably above management's forecast of $158 million. On the back of the strong result, management increased its full-year revenue guidance for 2025 by a staggering $50.5 million, from $662 million to $712.5 million. With all of that said, there is still some room for improvement at the bottom line. Lemonade's preferred measure of profitability is adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), where it lost $40.9 million during Q2. But it was better than the adjusted EBITDA loss of $43 million from the year-ago period, so the company is on the right track. Plus, Lemonade had over $1 billion in liquidity on its balance sheet at the end of Q2, so it has plenty of runway to continue investing aggressively in growth initiatives, as long as its losses don't increase too dramatically from current levels. Lemonade stock might be cheap right now When Lemonade stock peaked during the tech frenzy in 2021, its price-to-sales (P/S) ratio topped 90, which was completely unsustainable. But the decline in the stock since then, combined with the company's surging revenue growth, has pushed its P/S ratio down to just 6.1. That's near the cheapest level since Lemonade went public. Therefore, the stock still looks very attractive, even after the blistering gains that followed its Q2 earnings report. As I mentioned, the recovery in Lemonade stock might just be getting started. The company plans to grow its IFP to $10 billion over the next decade, representing a near-tenfold increase from its current level, so investors willing to hold this stock for the long term could reap significant rewards from here. Should you buy stock in Lemonade right now? Before you buy stock in Lemonade, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lemonade wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lemonade. The Motley Fool has a disclosure policy. 1 Brilliant Artificial Intelligence (AI) Stock Down 70% You Might Regret Not Buying on the Dip in August was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
06-08-2025
- Business
- Yahoo
Lemonade (LMND) Soars 29% on Higher Growth Outlook
We recently published . Lemonade, Inc. (NYSE:LMND) is one of the best-performing stocks on Tuesday. Lemonade soared by 29.54 percent on Tuesday to close at $47.93 apiece as investors cheered a higher growth outlook for full-year 2025 despite posting a mixed earnings performance in the past quarters of the year. In a letter to its shareholders, Lemonade, Inc. (NYSE:LMND) said it was raising its full-year revenue guidance to $710 million to $715 million, versus the $661 million to $663 million previously. Outlook for adjusted EBITDA loss was maintained at a range of $135 million to $140 million. For the third quarter, Lemonade, Inc. (NYSE:LMND) targets to rake in between $183 million and $186 million in revenues and post adjusted EBITDA loss of $34 million to $37 million. In the second quarter of the year, Lemonade, Inc. (NYSE:LMND) narrowed its net loss by 23 percent to $43.9 million from $57.2 million in the same period last year, as total revenues grew 34 percent to $164.1 million from $122 million year-on-year. Source: Pexels In the first half, net loss widened by 1.7 percent to $106.3 million from $104.5 million, while revenues grew by 31 percent to $315.3 million from $241.1 million year-on-year. While we acknowledge the potential of LMND as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
