The chief business officer and the chief insurance officer of the insurance technology company Lemonade Inc (NYSE:LMND) sold their shares in the company on Dec. 3, as per the SEC filings. The company's technical analysis shows that the stock is under short-term pressure.
What Happened: John Sheldon Peters sold 1,790 shares of the company worth $81,445, according to Benzinga Pro. After the transaction, the chief insurance officer was left with 88,493 shares of the company. He diluted 1.98% of his ownership after the trade.
On the other hand, the chief business officer Maya Prosor sold 304 shares, worth a total of $13,832, as per Benzinga Pro. After the trade, he directly owns 8,684 company shares and 29,286 shares indirectly via Cohen Holdings, LLC. Prosor's sale was conducted to cover tax withholding obligations and it wasn't a discretionary decision.
Why It Matters: From a technical perspective, the analysis of daily moving averages indicates that the stock may be under pressure in the short term.
The stock ended at $39.90 apiece on Monday. This was below its eight and 20-day simple moving averages, of $40.95 and $44.42, respectively. As per Benzinga Pro data, its current stock price was higher than the 50-day moving average of $33.92 and its 200-day moving average of $21.50.
This implies that it could still be in a long-term uptrend while it is testing fresh support levels near the average value.
On the other hand, the relative strength index of 49.22 suggests the stock is in a neutral zone and is neither overbought nor oversold.
Price Action: Shares of Lemonade are up 134.15% on a year-to-date basis, outperforming the NYSE Composite, which was up 14.05% in the same period. However, Lemonade has fallen by 21.80% over the last month.
About 12 analysts tracked by Benzinga have a consensus 'sell' rating on the stock with a price target of $29.18 per share. The highest price target was $60 issued by JPMorgan on Nov. 22 and the low is $12 issued by BofA Securities on May 4, 2023.
The three most recent analyst ratings have seen a target upgrade by JMP Securities, BMO Capital, and Piper Sandler, however, it still implies a 0.58% downside for LMND.
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