Lemonade Stock Buy Hold or Sell Recommendation
| LMND Stock | USD 49.93 1.09 2.14% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Lemonade is 'Strong Buy'. Macroaxis provides Lemonade buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Lemonade positions.
Check out Lemonade Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Lemonade Stock refer to our How to Trade Lemonade Stock guide. Note, we conduct extensive research on individual companies such as Lemonade and provide practical buy, sell, or hold advice based on investors' constraints. Lemonade. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Lemonade |
Execute Lemonade Buy or Sell Advice
The Lemonade recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Lemonade. Macroaxis does not own or have any residual interests in Lemonade or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Lemonade's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Lemonade Trading Alerts and Improvement Suggestions
| Lemonade is way too risky over 90 days horizon | |
| Lemonade appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 429.8 M. Net Loss for the year was (236.9 M) with profit before overhead, payroll, taxes, and interest of 89.4 M. | |
| Lemonade currently holds about 285.5 M in cash with (119.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.14. | |
| Lemonade has a poor financial position based on the latest SEC disclosures | |
| Roughly 28.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from fool.com: Can Lemonade 10X its Way to Becoming the Next Big Brand in Insurance |
Lemonade Returns Distribution Density
The distribution of Lemonade's historical returns is an attempt to chart the uncertainty of Lemonade's future price movements. The chart of the probability distribution of Lemonade daily returns describes the distribution of returns around its average expected value. We use Lemonade price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Lemonade returns is essential to provide solid investment advice for Lemonade.
| Mean Return | 1.67 | Value At Risk | -4.8 | Potential Upside | 16.93 | Standard Deviation | 6.00 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Lemonade historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Lemonade Stock Institutional Investors
| Shares | Legal & General Group Plc | 2024-06-30 | 661.3 K | Bank Of America Corp | 2024-06-30 | 657.5 K | Susquehanna International Group, Llp | 2024-06-30 | 641.4 K | Goldman Sachs Group Inc | 2024-06-30 | 605.3 K | Northern Trust Corp | 2024-09-30 | 454.9 K | Charles Schwab Investment Management Inc | 2024-09-30 | 448.3 K | Nuveen Asset Management, Llc | 2024-06-30 | 420 K | Landscape Capital Management,llc | 2024-09-30 | 321.9 K | Fmr Inc | 2024-09-30 | 318.3 K | Softbank Group Corp | 2024-09-30 | 12 M | Vanguard Group Inc | 2024-09-30 | 5.2 M |
Lemonade Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Investments | (54M) | 50.1M | (795.4M) | 92.4M | 88.7M | 93.1M | |
| Change In Cash | 167.9M | 301.1M | (300.8M) | 15.9M | (15M) | (14.3M) | |
| Free Cash Flow | (81.4M) | (96.1M) | (154M) | (173.1M) | (128.3M) | (134.7M) | |
| Depreciation | 600K | 1.7M | 3.7M | 12.2M | 20M | 21M | |
| Other Non Cash Items | 900K | 14.4M | 6.2M | 15.4M | 109.1M | 114.6M | |
| Capital Expenditures | 3.3M | 4.4M | 9.4M | 10.1M | 9.2M | 5.9M | |
| Net Income | (108.5M) | (122.3M) | (241.3M) | (297.8M) | (236.9M) | (248.7M) | |
| End Period Cash Flow | 270.3M | 571.4M | 270.6M | 286.5M | 271.5M | 281.2M | |
| Change To Netincome | 4.7M | 24.7M | 46.1M | 68M | 78.2M | 82.1M | |
| Change To Inventory | 64.7M | 68.1M | 121.2M | 54.8M | 63.0M | 76.5M |
Lemonade Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Lemonade or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Lemonade's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Lemonade stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 1.41 | |
β | Beta against Dow Jones | 2.11 | |
σ | Overall volatility | 6.04 | |
Ir | Information ratio | 0.26 |
Lemonade Volatility Alert
Lemonade currently demonstrates below-average downside deviation. It has Information Ratio of 0.26 and Jensen Alpha of 1.41. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lemonade's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lemonade's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Lemonade Fundamentals Vs Peers
Comparing Lemonade's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Lemonade's direct or indirect competition across all of the common fundamentals between Lemonade and the related equities. This way, we can detect undervalued stocks with similar characteristics as Lemonade or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Lemonade's fundamental indicators could also be used in its relative valuation, which is a method of valuing Lemonade by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Lemonade to competition |
| Fundamentals | Lemonade | Peer Average |
| Return On Equity | -0.33 | -0.31 |
| Return On Asset | -0.0742 | -0.14 |
| Profit Margin | (0.44) % | (1.27) % |
| Operating Margin | (0.48) % | (5.51) % |
| Current Valuation | 3.32 B | 16.62 B |
| Shares Outstanding | 71.4 M | 571.82 M |
| Shares Owned By Insiders | 27.52 % | 10.09 % |
| Shares Owned By Institutions | 41.40 % | 39.21 % |
| Number Of Shares Shorted | 15.84 M | 4.71 M |
| Price To Book | 6.01 X | 9.51 X |
| Price To Sales | 7.24 X | 11.42 X |
| Revenue | 429.8 M | 9.43 B |
| Gross Profit | 89.4 M | 27.38 B |
| EBITDA | 77.3 M | 3.9 B |
| Net Income | (236.9 M) | 570.98 M |
| Cash And Equivalents | 285.5 M | 2.7 B |
| Cash Per Share | 4.14 X | 5.01 X |
| Total Debt | 43.1 M | 5.32 B |
| Debt To Equity | 0.03 % | 48.70 % |
| Current Ratio | 1.55 X | 2.16 X |
| Book Value Per Share | 8.31 X | 1.93 K |
| Cash Flow From Operations | (119.1 M) | 971.22 M |
| Short Ratio | 7.02 X | 4.00 X |
| Earnings Per Share | (3.04) X | 3.12 X |
| Price To Earnings To Growth | 1.61 X | 4.89 X |
| Target Price | 30.86 | |
| Number Of Employees | 1.26 K | 18.84 K |
| Beta | 1.68 | -0.15 |
| Market Capitalization | 3.57 B | 19.03 B |
| Total Asset | 1.3 B | 29.47 B |
| Retained Earnings | (1.1 B) | 9.33 B |
| Net Asset | 1.3 B |
Note: Acquisition by Shai Wininger of 9327 shares of Lemonade subject to Rule 16b-3 [view details]
Lemonade Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Lemonade . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Lemonade Buy or Sell Advice
When is the right time to buy or sell Lemonade? Buying financial instruments such as Lemonade Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
Use Investing Ideas to Build Portfolios
In addition to having Lemonade in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Cash Cows Thematic Idea Now
Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Cash Cows Theme or any other thematic opportunities.
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Check out Lemonade Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Lemonade Stock refer to our How to Trade Lemonade Stock guide.You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lemonade. If investors know Lemonade will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lemonade listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (3.04) | Revenue Per Share 6.982 | Quarterly Revenue Growth 0.186 | Return On Assets (0.07) | Return On Equity (0.33) |
The market value of Lemonade is measured differently than its book value, which is the value of Lemonade that is recorded on the company's balance sheet. Investors also form their own opinion of Lemonade's value that differs from its market value or its book value, called intrinsic value, which is Lemonade's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lemonade's market value can be influenced by many factors that don't directly affect Lemonade's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lemonade's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lemonade is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lemonade's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.