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Why Lemonade Shares Fell 13.4% Last Month

By Anders Bylund - Mar 8, 2021 at 4:29PM

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The volatile insurance tech stock amplified the broader market's moves in anticipation of an early March earnings report.

What happened

Shares of insurance technology maverick Lemonade (LMND -4.53%) fell 13.4% in February, according to data from S&P Global Market Intelligence. The company had no news of its own to drive the share price in any particular direction. Instead, the volatile stock largely amplified whatever was going on in the broader market last month.

So what

The jitters of February led up to Lemonade's Q4 report on March 1. The company edged out Wall Street's estimates across the board but followed up the solid results with modest guidance for the next quarter. Lemonade's stock took another sour turn on the news, falling 16.6% on March 2.

A lemon with arms and legs slides down on a red charting arrow.

Image source: Getty Images.

Now what

This exciting financial technology specialist is rewriting the rule book for selling and managing insurance plans, and I think that Lemonade is just getting started on a long story of innovation and market disruption. The stock now trades 54% below January's 52-week highs. Lemonade's sudden (and often unexplainable) price swings are not every investor's cup of tea, but the recent pullback sure looks like a buying opportunity to me.

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Stocks Mentioned

Lemonade, Inc. Stock Quote
Lemonade, Inc.
LMND
$19.79 (-4.53%) $0.94

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