Lemonade (LMND) offers various types of insurance through an online portal. I am bullish on the stock.
It’s that time again — time for another exciting week of earnings reports. Among the most talked-about ones for this week in particular will come from Lemonade.
The company is scheduled to publish its third-quarter 2021 financial results after the market closes on Monday. There will also be a conference call and webcast.
So, get ready to place your bets as one of the most disruptive insure-tech businesses steps up to bat. Today, we’ll give you the details so you can make a more informed decision — and we’ll also see what Lemonade’s website traffic can tell us about the company’s quarterly performance.
A Quick Look at LMND Stock
As the earnings report gets closer, LMND stock is either a bargain or a falling rock, depending on one’s perspective.
The stock has a 52-week range of $55.15 to $188.30. It’s trading near $70 on earnings day, so it’s definitely closer to the bottom of the range.
Unfortunately, there’s no price-to-earnings (P/E) ratio to speak of, as Lemonade hasn’t had net earnings for quite a while.
Could the company’s Q3 report change this earnings profile from negative to positive?
Anything’s possible — and if LMND stock revisits its prior peak, today’s investors could double their investment and then some.
What’s Different About Lemonade?
If you’re going to wager on LMND stock as the big earnings release approaches, you’ll definitely want to know what sets this company apart from the competition.
For one thing, Lemonade offers a wide variety of insurance types. These include renters, homeowners, and life insurance — and even pet insurance, which isn’t always offered by traditional insurers.
In fact, Lemonade’s Pet segment recently launched a preventative care package designed specifically for puppies and kittens that are under two years old.
At the same time, Lemonade’s insurance offerings are tech-infused and data-driven, as they’re powered by artificial intelligence and behavioral economics.
This means that Lemonade may be less likely to turn down prospective clients who were rejected by traditional insurance carriers. Plus, Lemonade might offer more favorable rates to its clients.
On top of all that, Lemonade gives its unused premiums to nonprofits selected by its community, during its annual Giveback event. So, this really is a company that you can feel good about investing in.
What Lemonade’s Website Traffic Tells Us
Lemonade’s website traffic tells a tale of increasing interest in the company from late 2020 into the summer of 2021.
It’s probably not a coincidence that Lemonade’s website traffic peaked soon before the company reported its Q2 2021 earnings results and held its accompanying conference call and webcast.
However, that event didn’t result in a price bump in LMND stock.
So, there’s no guarantee that increasing website traffic will necessarily translate into immediate gains for Lemonade’s investors.
It does tell us, though, that people are curious about Lemonade and probably want to know more about the company.
That’s not a bad thing as Lemonade is still a relatively new insurance start-up that’s undoubtedly working hard to steal attention — and market share — from its older competitors.
Wall Street’s Take
According to TipRanks’ analyst rating consensus, LMND is a Hold, based on two Buy, two Hold, and one Sell ratings. The average analyst price target is $84.60, implying 21.7% upside potential.
The Takeaway
Clearly, Lemonade isn’t like any other insurer on the market today.
Its unique business model relies less on traditional methodologies, and more on technology and innovation.
So, with the Q3 financial results in focus, prepare for another wave of interest in Lemonade — and hopefully, a profitable quarter.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
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