William Blair analyst Adam Klauber has maintained their neutral stance on LMND stock, giving a Hold rating on October 28.
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Adam Klauber has given his Hold rating due to a combination of factors that reflect both the strengths and challenges faced by Lemonade. The company has demonstrated solid execution with a notable increase in in-force premiums and revenue, surpassing expectations. This growth is supported by strong underwriting practices, as evidenced by a record low gross loss ratio, indicating improved risk management and minimal impact from catastrophic events.
Despite these positive developments, Klauber remains cautious due to the need for further progress towards sustainable profitability. While Lemonade’s guidance for future growth and adjusted EBITDA improvements are promising, the analyst prefers to see more consistent profitability before adopting a more optimistic stance on the stock. Thus, the Hold rating reflects a balanced view of the company’s current performance and future potential.
In another report released on October 28, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $59.00 price target.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LMND in relation to earlier this year.