What happened
The stock market was having a modestly strong day on Wednesday, with all three major averages up by 0.4% or less at 2 p.m. EST. However, insurance technology company Lemonade (LMND 0.83%) was a big outperformer. Shares had risen by 11%, and this came on the heels of a double-digit rise just a day earlier.
So what
There isn't any company-specific news on Wednesday, nor are there any analyst upgrades driving Lemonade's price higher.
Instead, this seems to be a continuation of the momentum that followed Lemonade's lockup expiration on Tuesday. The high-momentum insurance disruptor's stock fell sharply on Monday in anticipation of the lockup expiration, and for good reason -- 44 million shares, or roughly two-thirds of all Lemonade stock -- became available to trade by insiders and early investors for the first time beginning on Tuesday.
Image source: Getty Images.
Well, this turned out to be a non-event. Based on yesterday's price action and the stock's volume (about 8 million shares between today and Tuesday), it doesn't seem like many insiders are in a big rush to cash out.
Now what
Now that the lockup fears have subsided, investors can once again focus on Lemonade's business. And there's no denying the growth momentum. The company's in-force premiums nearly doubled year-over-year in the third quarter and customer count grew by 67%. Most experts agree that Lemonade is the most promising insurance disruptor. Since the company has just started to scratch the surface of the $5 trillion global insurance industry, it's not a surprise that investors seem to be excited about buying the stock.
