Yahoo Finance Lemonade (LMND) Surges 8.8%: Is This an Indication of Further Gains?
Lemonade (LMND) shares rallied 8.8% in the last trading session to close at $16.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15% loss over the past four weeks.
LMND is well-poised to gain from higher net added customers, growth in overall average policy value, expanded geographic footprint, growth in premiums placed with third-party insurance companies and a solid capital position.
Higher net added customers year over year, expanded geographic footprint and product offerings are likely to boost gross written premium. Diversification of the company's investment portfolio with higher returns and lower investment expenses are likely to drive net investment income. LMND anticipates revenues between $118 million and $120 million for the second quarter of 2024.
The insurer boasts a solid capital position. Its existing cash and cash equivalents will be sufficient to meet the working capital, liquidity and capital expenditure needs for at least the next 12 months.
This company is expected to post quarterly loss of $0.85 per share in its upcoming report, which represents a year-over-year change of +12.4%. Revenues are expected to be $122.46 million, up 17.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lemonade, the consensus EPS estimate for the quarter has been revised 3.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LMND going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lemonade is part of the Zacks Insurance - Multi line industry. MBIA (MBI), another stock in the same industry, closed the last trading session 0.4% higher at $5.57. MBI has returned -5.6% in the past month.
MBIA's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.09. Compared to the company's year-ago EPS, this represents a change of +80%. MBIA currently boasts a Zacks Rank of #4 (Sell).
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Lemonade, Inc. (LMND) : Free Stock Analysis Report
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