SoftBank Group Capital Ltd sells $1.57 million in Lemonade shares

Published 29/03/2025, 02:02
© Ben Kelmer, Lemonade PR

SoftBank (TYO:9984) Group Capital Ltd, a significant stakeholder in Lemonade, Inc. (NYSE:LMND), has recently sold a substantial portion of its holdings in the insurance technology company. According to a Form 4 filing with the Securities and Exchange Commission, SoftBank sold 42,160 shares of Lemonade at an average price of approximately $37.22 per share, totaling around $1.57 million. The sale comes as Lemonade’s stock has shown remarkable volatility, with InvestingPro data showing a 98% return over the past year despite recent pullbacks.

The transactions occurred on March 26, 2025, and were executed at prices ranging from $37.00 to $37.67 per share, as noted in the filing. Following this sale, SoftBank retains ownership of 10,452,476 shares of Lemonade. According to InvestingPro, the company currently maintains a "Fair" financial health score, though analysts suggest the stock may be slightly overvalued at current levels.

This move by SoftBank, a prominent investor in the tech sector, is noteworthy for investors tracking the activities of major shareholders in Lemonade, which is known for its innovative approach to insurance services. With revenue growth of 22.5% in the last twelve months and eight additional exclusive ProTips available on InvestingPro, investors can access deeper insights into Lemonade’s financial performance and market position.

In other recent news, Lemonade Inc . reported its fourth-quarter 2024 earnings, highlighting a significant revenue increase and improved financial metrics. The company achieved a revenue of $149 million, surpassing the forecasted $145.02 million, and reported an earnings per share (EPS) of -$0.42, better than the anticipated -$0.61. Despite these positive results, the stock saw a decline in premarket trading, reflecting investor concerns over future profitability and competitive pressures. Additionally, Lemonade’s gross profit rose by 90% year-over-year, reaching $167 million, driven by the expansion of its insurance products. The company also reported its first cash flow positive year, with $48 million in positive cash flow. In other developments, Lemonade is expanding its car insurance product, which is now available in eight states. Furthermore, the company aims to achieve EBITDA positive by 2026 and GAAP net income positive by 2027. Analyst discussions during the earnings call addressed the impact of California wildfires, which resulted in a $45 million gross loss, and the company’s strategy to grow its car insurance business.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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