Lemonade (NYSE: LMND) is primarily an insurance provider for homeowners, renters, pet owners, and most recently, auto insurance. It also provides life insurance services.
The company’s primary USP is that it is driven by technology, data, artificial intelligence, contemporary design, and behavioral economics, which help transform the insurance process into being more customer-friendly, affordable, and accurate.
The company is set to announce its Q4 2021 results on February 23. Going by the last reported quarter’s commentary, we know that the company’s Q4 top-line growth has most likely continued to be strong.
Lemonade’s projected in-force premiums are $380 million to $384 million in Q4, which is impressive. Additionally, its revenues are expected to be around $39 million to $40 million, which is almost double that of the year-ago quarter’s revenues of $20.5 million.
Website Visit Trends
Being a unique and tech-driven insurer, we believe that flow of virtual visits to Lemonade’s website has a major role to play in driving revenues to the company.
Notably, TipRanks’ new tool which analyzes user visits to a company’s website, came in handy in our mission. What we found with the help of the tool was that total estimated visits from all over the world to Lemonade’s website were up 0.23% from the third quarter of 2021.
However, the company currently offers its services only in the U.S., Germany, the Netherlands, and France. When we selected these regions on the tool, we saw that there has been a 1.28% rise in total estimated website visits on a quarter-over-quarter basis.
As we dug deeper, we found that the total website visits to Lemonade’s website have also grown year-over-year by 39.26% in these addressable regions.
Experts’ Concerns Remain
Despite the impressive top-line outlook for Q4, the bottom-line headwinds still seem to be a lingering concern.
Last month, Barclays analyst Tracy Benguigui reiterated a Hold rating on the LMND stock, and trimmed the price target to $43 from $62.
The analyst believes that there is not much room for the stock appreciation in the near term. Additionally, with inflation hovering around 40-year highs for the past three months, Benguigui isn’t very hopeful for Lemonade in the short term.
The rest of Wall Street is also cautious, with a Hold rating on the stock, based on one Buy, one Hold, and two Sells. The average LMND price target is $43.
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