Lemonade (LMND) Plunges 13.52% on Downgrade, Sell-Off

Lemonade (LMND) shares plummeted 13.52% intraday, marking the fourth consecutive day of decline and reaching its lowest level since November 2024. The stock has shed 21.48% over the past four days, reflecting significant investor concern.

Morgan Stanley recently downgraded Lemonade to a sell rating, citing an uncertain macroeconomic environment and potentially higher loss costs. This move by Morgan Stanley, coupled with Titleist Asset Management LLC's decision to reduce its holdings in Lemonade by 41.7% during the fourth quarter, has likely contributed to the recent volatility in the stock's performance. These actions suggest a growing lack of confidence among institutional investors in Lemonade's near-term prospects.

Analyst Bob Huang from Morgan Stanley also adjusted the target price for Lemonade from $34 to $24, further underscoring the bearish sentiment surrounding the company. This downward revision in the target price aligns with the broader market concerns about Lemonade's ability to navigate the current economic challenges and maintain profitability.