What happened
A delay and a departure were the two main reasons for the decline of Lemonade's (LMND -0.46%) stock on Thursday. The next-generation fintech's share price slipped by 1% on the day, in contrast to the rising S&P 500 index, which increased at nearly that same percentage rate.
So what
In a regulatory filing, Lemonade divulged that it will not be submitting its annual report, in the form of the required 10-K document, within the prescribed time period.
Lemonade said this was due to its July 2022 acquisition of vehicle insurer Metromile; this apparently requires more time "to address the accounting," for Metromile's incorporation into its now-parent. Lemonade added that it should be able to complete the filing within the mandated extension period; it did not provide a more precise estimate on the timing.
In a separate regulatory document submitted the same day, Lemonade said that its chief business development officer Jorge Espinal resigned from his position last Friday, Feb. 24. That move was effective as of Wednesday. The tersely worded filing did not provide a reason or reasons for Espinal's departure, nor did it reveal any plans to find a successor.
Now what
Neither development on its own is cause for great concern about Lemonade.
Nevertheless, the two come at a bearish time for the company's stock, as investors continue to trade out of fintechs and more traditional finance stocks due to concerns about relatively high interest rates (which can affect certain types of activities and products in these sectors). Unless and until those concerns melt away, Lemonade stock should continue to be under pressure from the market.
