Lemonade Inc (NYSE:LMND) shares are trading flat Friday morning, amid a 20% surge for the week, 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.
Is This The Future Of EV Insurance Rates?
Lemonade has announced 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. This decision follows the company’s access to previously unavailable FSD data, indicating that Teslas driven with FSD are involved in far fewer accidents, according to co-founder Shai Wininger.
The collaboration with Tesla also deepens Lemonade’s presence in the EV market and could drive high-value customer acquisition at relatively low marketing costs. Investor Chamath Palihapitiya noted that lower premiums and more predictable payouts could translate into more stable financial outcomes for insurers and reinsurers alike.
Lemonade’s Stellar Momentum
Lemonade stock is currently trading 22.4% above its 20-day simple moving average (SMA) and 47% above its 100-day SMA, demonstrating strong short-term momentum. Shares have surged approximately 194.56% over the past 12 months and are currently positioned closer to their 52-week highs than lows.
The RSI is at 69.42, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating potential for continued upward movement.
Are Analysts Underestimating Upcoming Earnings?
Investors are looking ahead to the next earnings report on Feb. 24.
- 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: 97.77) — Stock is outperforming the broader market.
The Verdict: Lemonade’s Benzinga Edge signal reveals a strong momentum setup. The high momentum score indicates that the stock is currently in a favorable position, suggesting that traders may want to consider this stock for potential gains.
Top ETF Exposure
- First Trust Small Cap Growth AlphaDEX Fund (NASDAQ:FYC): 0.89% Weight
- SPDR S&P Insurance ETF (NYSE:KIE): 1.99% Weight
- Simplify Volt Robocar Disruption ETF (NYSE:VCAR): 4.05% Weight
Significance: Because LMND carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
LMND Shares Edge Higher Friday
LMND Price Action: Lemonade shares were flat at $95.07 at the time of publication on Friday, according to Benzinga Pro data.
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