New York, January 12, 2026, 14:55 (ET) — Regular session
- Lemonade shares climbed nearly 8%, reaching $85.81 in afternoon trading
- Short interest is still elevated, setting the stage for potentially sharper price swings
- Investors are eyeing the next earnings report, set for release in late February
Lemonade Inc shares surged 7.7% to $85.81 on Monday, pushing higher amid a wave of buying in volatile growth stocks. Earlier in the day, the online insurer’s stock hit $85.99.
Lemonade surged to a new 52-week high, snapping its streak of erratic rallies and drawing renewed attention from traders.
This is significant because Lemonade remains heavily shorted. Around 20% of its public float was shorted as of Dec. 15. The “days to cover” stands near five, indicating how fast shorts could be squeezed into buying if the stock climbs further.
Peers saw smaller shifts. Root Inc climbed roughly 3.8%, while Hippo Holdings edged up about 0.2%. Lemonade, however, clearly led the pack that day.
Wall Street remains divided. Truist Securities kicked off coverage on Jan. 6, issuing a buy rating. Yet, the average one-year price target on Fintel stood at $62.86 as of Dec. 21, under Monday’s trading price. Predictions span a wide range, from $33.33 up to $89.25. (Nasdaq)
The company’s latest detailed update showed a business still striving for scale, though margins are getting better. In its third-quarter shareholder letter, Lemonade reported that in-force premium — the annualized premium currently in force — climbed 30% to $1.16 billion. Gross profit margin also jumped to 41%, with the letter noting, “IFP growth has accelerated to 30% while gross profit margin has more than doubled to 41%.”
The setup cuts both ways. Stocks with heavy short interest can surge on forced buying, then tumble just as quickly if momentum fades. Adding another twist: Lemonade’s chief insurance officer John Peters sold 10,000 shares on Jan. 6 at $80, using a Rule 10b5-1 plan — a pre-planned trading program. (SEC)
Next in focus is the timing of the company’s earnings. Lemonade hasn’t officially announced a date, but MarketBeat’s calendar points to Feb. 24 before the market opens. Traders will zero in on loss trends, cash flow, and any fresh guidance regarding when the company expects to turn profitable.
