What Happened?
Shares of digital insurance provider Lemonade (NYSE: LMND) jumped 7.4% in the afternoon session after an analyst at Citizens raised the company's stock price target to $80 from $60, maintaining a "Market Outperform" rating.
The decision, made by analyst Matthew Carletti, followed Lemonade's strong performance in its third-quarter 2025 financial results. The insurance technology company surpassed expectations on both its top and bottom lines. Furthermore, its revenue for the quarter reached $195 million, beating the forecast of $184.9 million. The positive analyst action reflected confidence in the company's potential after its solid financial progress.
The shares closed the day at $73.04, up 8.4% from previous close.
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What Is The Market Telling Us
Lemonade’s shares are extremely volatile and have had 63 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 previous big move we wrote about was 14 days ago when the stock gained 4.4% on the news that an analyst at Morgan Stanley raised the price target on the company's shares, alongside a spike in bullish options activity. Analyst Bob Huang increased the price target for Lemonade to $49.00 from a previous $45.00, representing an 8.89% lift. However, the firm kept its "Underweight" rating on the stock. Separately, the options market showed significant bullish interest. The volume of call options traded was 1.4 times the expected amount, with about 10,373 contracts changing hands. This activity suggested that some traders were betting on a continued rise in the stock's price.
Lemonade is up 101% since the beginning of the year, and at $72.98 per share, it is trading close to its 52-week high of $79.14 from November 2025. Investors who bought $1,000 worth of Lemonade’s shares 5 years ago would now be looking at an investment worth $1,058.
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