Lemonade (LMND) Stock Hits 52-Week High As Company Slashes Tesla FSD Insurance Rates

Lemonade Inc (NYSE:LMND) shares are up on Thursday, hitting a new 52-week high, as the company announced a significant reduction in insurance rates for Tesla Inc (NASDAQ:TSLA) drivers using its Full Self-Driving (FSD) system. Here’s what investors need to know.

• Lemonade shares are testing new highs. Why are LMND shares at highs?

Why This Matters for Lemonade's Business

Lemonade has stated that it will cut per-mile rates for FSD-engaged driving by approximately 50%, a move that could lead to further reduced rates in the future. The decision follows the company’s access to previously unavailable FSD data, which indicates that Teslas driven with FSD are involved in far fewer accidents, according to co-founder Shai Wininger.

Founded in 2015 and public since 2020, Lemonade is an AI-native insurer offering renters, homeowners, pet, life and auto coverage through a fully digital app. Headquartered in New York, the company built its brand on instant underwriting, behavioral economics and a "Giveback" program that donates unused underwriting profits to charities.

The Tesla FSD announcement is an important proof point for that thesis. By directly tying pricing to granular driving data, Lemonade can reward safer-than-expected behavior with materially lower premiums while still protecting margins.

Strategic Significance For LMND Shareholders

The collaboration with Tesla also deepens Lemonade's presence in the EV market and could drive high-value customer acquisition at relatively low marketing cost.

Investor Chamath Palihapitiya noted that lower premiums and more predictable payouts could translate into more stable financial outcomes for insurers and reinsurers alike.

For LMND shareholders, Thursday's rally reflects optimism that this data-driven model can finally convert into sustained growth and improved profitability.

Uncovering Lemonade’s Strong Momentum Shift

Lemonade’s stock is currently trading 17.9% above its 20-day simple moving average (SMA) and 41.1% above its 100-day SMA, indicating strong short-term momentum. Over the past 12 months, shares have surged approximately 193.81%, and the stock is positioned closer to its 52-week high than its low, reflecting robust performance.

The RSI is at 60.35, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of a neutral RSI and a bullish MACD suggests mixed momentum, indicating potential for continued upward movement.

• Key Resistance: $90.00
• Key Support: $78.50

Are Analysts Underestimating Revenue Potential?

Investors are looking ahead to the next earnings report on February 24, 2026.

• EPS Estimate: Loss of 40 cents (Up from Loss of 42 cents YoY)
• Revenue Estimate: $217.51 million (Up from $148.80 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $42.79. Recent analyst moves include:

• Cantor Fitzgerald: Overweight (Raises Target to $92.00) (Jan. 14)
• Truist Securities: Initiated with Buy (Target $98.00) (Jan. 6)
• Keefe, Bruyette & Woods: Underperform (Raises Target to $40.00) (Nov. 25, 2025)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Lemonade, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 97.28) — Stock is outperforming the broader market.

The Verdict: Lemonade’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is performing well relative to the market. Investors should consider this positive momentum while monitoring for any shifts in market conditions.

LMND Shares Surge Thursday

LMND Price Action: Lemonade shares were up 15.63% at $98.75 at the time of publication on Thursday, according to Benzinga Pro data.

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