Lemonade

Lemonade (#LEMONADE) weekly uptrend opportunity based On 1.00 Lot Calculation:

Israeli-founded insurance tech firm Lemonade offers renters' insurance, homeowners' insurance, pet insurance and term life insurance in the United States as well as contents and liability policies in Germany, and the Netherlands, and renters insurance in France. The company IPO was on July 2020. Lemonade is headquartered in New York, with offices in Tel Aviv and Amsterdam. The company uses technology such as artificial intelligence and chatbots, as well as behavioral economics, to deliver affordable homeowners, renters, life, and pet insurance. Lemonade claims its simplified claims process and rates, it offers renters insurance starting at $5 per month, and homeowners’ insurance starting at $25 per month, resonates strongly with younger consumers.

EARNINGS REPORT: On a per-share basis, the company had a loss of $1.08 which surpassed Wall Street expectations. The company posted revenue of $35.7 million in the period, also topping forecasts. For the current quarter ending in December, Lemonade said it expects revenue in the range of $39 million to $40 million. The company expects full-year revenue in the range of $126 million to $127 million.

COMPANY NEWS:

• The company’s newest service, Lemonade Car-November 2. The app offers real-time crash detection, access to 24/7 roadside assistance, and the ability to dispatch emergency services. Drivers of hybrid and electric vehicles (EVs) are set to get special discounts on their car insurance, as will existing users of Lemonade’s other insurance offerings. This service is introduced in Illinois US and they have plans to roll out nationwide. The company also uses facial recognition technology to flag some claims.
• The company announced on Monday, November 8, that it's acquiring Metromile for the proprietary data and machine learning algorithms behind Metromile's personalized auto insurance offerings. Lemonade will acquire Metromile in an all-stock transaction that implies a fully diluted equity value of approximately $500 million. Lemonade also stands to gain from Metromile's 49 state licenses, over $100 million of seasoned in-force premium (IFP)(defined as the aggregate annualized premium for customers as of the period end date), and over $250 million of cash on the balance sheet. The transaction is expected to close during Q2 2022. Lemonade shares plunge 13.5% after the event.
• Lemonade announced new pet insurance designed for puppies and kittens recently for $10 per month. (October 28). Annual vet visits are around $200 each, with treatments and other emergencies procedures driving that price exponentially higher. According to the American Pet Products Association, pet ownership increased from 67% up to 70 % of all U.S. households over the past two years. That represents over 10 million new dogs and cats. The rate of cat owners who have signed on for pet-centric insurance coverage has doubled since 2019.

PRICE ACTION: The company hit $188.30 the record high at the beginning of the year after 550% increase since its IPO in July. The price is currently moving around $62.79 (almost one third of previous high).

ANALYSTS OPINIONS: Wall Street Journal analysts set medium target at $71 target, while Nasdaq analysts recommend a buy with medium price target at $77.83, while Bloomberg recommends a Buy with target at $73.

Lemonade, November 10, 2021
Current Price: 62.30

Example of calculation based on weekly trend direction for 1.00 Lot*

* 1.00 lot is equivalent of 1000 units
** Calculations for exchange rate used as of 15:00 (GMT) 10/11/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail