Lemonade shares surge nearly 30% following bullish report
Lemonade’s stock price jumped by nearly 30% on Thursday, well outpacing gains in the tech sector and the broader market and pushing the InsurTech’s share price to a record high.
The sharp climb was driven by a bullish report published on Thursday afternoon by the Motley Fool in which the online investing advice website picked the InsurTech as its stock of the month.
Shares in the New York-based company rose by $32.84, or 27.52%, on Thursday and have more than tripled since November. The carrier’s stock has also surged despite the expiration of selling restrictions on company insiders late last month.
Lemonade announced at the end of December that it had finished 2020 with more than one million active customers, a feat the company claims bested the likes of State Farm, Allstate, Geico and USAA by a span of 15-45 years.
In a statement announcing the milestone, Shai Wininger, the company’s co-founder and COO, said: “With every new customer, our system grows smarter, our underwriting gets better, and our prices become more accurate and fair.
“At Lemonade, one million customers translates into billions of data points, which feed our AI at an ever-growing speed. Quantity generates quality.”
Thursday’s share price move came amid a positive backdrop for stocks overall, with investors looking past the political unrest in Washington and reacting optimistically to the increased potential for economic stimulus following run-off election victories by two Democratic Senate candidates in Georgia on Tuesday.
The S&P 500 rose 1.48% on Thursday, while the S&P 500 insurance index fell by 0.40%. The S&P 500 technology index was higher by 2.65% on the day.