What happened
Stocks Lemonade (NYSE: LMND) closed trading on Wednesday by 12.9%, despite the complete lack of news from the company or the shocking development of events in the homeowners insurance market.
So what
Lemonade shares continued a long-standing pattern of price growth and impressive stock volumes, with no sudden jumps that could indicate a large investment by a single buyer. This is the momentum in the market at its best, bringing the stock prices of the innovative insurer to another all-time high.
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What now
Shares of lemonade now rose 93.8% since the first public offering (IPO) in July. This return is based on the closing price of the first day. Shares more than quadrupled from actual IPO prices of $ 29 per share.
Consumers are embracing Lemonade’s artificial intelligence-based insurance registration and management tools, where you never have to deal with a people’s insurance agent. The company is also passing on the cost savings of this fully digital business model to its customers in the form of lower insurance premiums.
Likewise, investors welcome the fantastic business results stemming from Lemonade’s disruptive idea. That’s sometimes all the rocket fuel you need to achieve another big jump a day without significant news.