SoftBank group capital sells $7.58 million in Lemonade stock

Published 27/03/2025, 02:04
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SoftBank (TYO:9984) Group Capital Ltd, a significant shareholder in Lemonade, Inc. (NYSE:LMND), recently sold a substantial portion of its holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, SoftBank offloaded a total of 204,575 shares of Lemonade’s common stock on March 24, 2025. The insurance technology company, currently valued at $2.5 billion, has seen its stock surge over 110% in the past year despite market volatility.

The shares were sold at prices ranging from $36.75 to $38.0335, resulting in a total transaction value of approximately $7.58 million. Following these transactions, SoftBank retains ownership of 10,494,636 shares in Lemonade. InvestingPro analysis indicates the stock is currently trading below its Fair Value, while showing strong revenue growth of 22.5% in the last twelve months.

This move is part of SoftBank’s ongoing management of its investment portfolio, which includes various technology and financial services companies. Lemonade, known for its innovative approach to insurance, continues to be a key player in the digital insurance space. For deeper insights into Lemonade’s financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, Lemonade Inc . reported its fourth-quarter 2024 earnings, showcasing a notable 29% increase in revenue year-over-year, amounting to $149 million. The company also reported an earnings per share (EPS) of -$0.42, beating the anticipated -$0.61. Despite these positive financial results, the company’s stock experienced a decline, reflecting investor concerns about future profitability and competitive challenges in the insurance sector. Lemonade achieved its first cash flow positive year with $48 million in positive cash flow and is expanding its car insurance product to eight states. The company aims to achieve EBITDA positive by 2026 and GAAP net income positive by 2027. Analysts from firms like Morgan Stanley (NYSE:MS) and Oppenheimer have been inquiring about Lemonade’s strategic plans, particularly regarding its car insurance expansion and profitability targets. The company’s focus on leveraging AI for precision insurance is evident in its strategic growth plans, including a 28% growth target for in-force premium in 2025.

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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