The stock market was having a fairly strong session on Thursday, but insurance disruptor Lemonade (LMND 7.32%) was an exception. As of 2:30 p.m. ET, Lemonade was down nearly 3%, reaching a fresh 52-week low in the process.
There isn't any company-specific news driving Lemonade's stock price lower. Rather, the latest downward move seems to be the result of an analyst downgrade.
An analyst at Barclays who covers Lemonade maintained its "equal-weight" rating (similar to a neutral opinion) but dramatically lowered their price target on the stock from $62 to $43. Now, while $43 still implies significant upside from the current share price of about $36, this is clearly a bearish move.
To be perfectly clear, it's important to take analyst opinions like this with a big grain of salt, especially when they aren't accompanied by any actual news about the business. However, it's evident that opinions on Lemonade have soured in recent months, presumably over fears about the company's recent loss ratios and its pending acquisition of Metromile, which investors didn't seem thrilled about.
However, the next several quarters should be interesting for the insurer as it rolls out its promising Lemonade Car auto insurance. If successful, the current price (which translates into a market cap of $2.2 billion) could end up being a bargain for patient investors.