What Happened?
Shares of digital insurance provider Lemonade (NYSE: LMND) jumped 8.3% in the afternoon session after Truist Securities initiated coverage on the company with a "Buy" rating and a $98 price target.
The new coverage from Truist highlighted Lemonade's digital-first approach as a structural advantage over traditional insurers. This positive view followed the company's strong third-quarter 2025 financial results, where it posted better-than-expected earnings and revenue. In response to the solid performance, Citizens also raised its price target on the stock to $80 from $60. The stock's climb, which marked a new 52-week high, reflected this renewed investor confidence, driven by favorable analyst ratings and solid financial performance.
The shares closed the day at $86.52, up 8.6% from previous close.
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What Is The Market Telling Us
Lemonade’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 28.2% on the news that the company posted strong second-quarter financial results that beat Wall Street estimates and raised its full-year outlook.
The AI-powered insurer posted revenue of $164.1 million and a loss of $0.60 per share, both of which topped analyst estimates. Company management attributed the strong performance to accelerating growth and healthy underwriting. Furthermore, Lemonade lifted its full-year 2025 revenue forecast to between $710 million and $716 million. The company also reported that its in-force premium, a key metric representing the value of all active policies, climbed 29% from the previous year to $1.08 billion, a sign of robust customer expansion.
Lemonade is up 14.1% since the beginning of the year, and at $86.64 per share, has set a new 52-week high. Investors who bought $1,000 worth of Lemonade’s shares 5 years ago would now be looking at an investment worth $500.84.
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