Soda shares fall earlier than the insurance coverage firm’s lockout expires
Daniel Schreiber, Co-Founder and CEO of Lemonade Inc., speaks on stage on day one of TechCrunch Disrupt SF 2018 at the Moscone Center on September 5, 2018 in San Francisco, California.
Kimberly White | Getty Images
Stocks of online insurance company Lemonade closed nearly 14% on Monday as investors prepare for the company’s insider selling restrictions to end on Tuesday.
Lemonade is one of the top performing companies to go public this year. The shares were up more than 300% above their original offering price in July. However, around 44 million shares can be sold as of Tuesday, and traders brace themselves for possible volatility.
Lemonade was launched in 2016 and offers insurance to tenants and homeowners. It uses artificial intelligence and chatbots to make finding and buying insurance easier and faster. Investors believe the company could soon move into additional markets like auto insurance, which has helped send stocks higher.
“We believe Lemonade is well positioned to (quickly) add product after product to the trillion dollar insurance industry,” JMP Securities analysts wrote in a December release.
Lemonade was number 17 among CNBC’s Disruptor 50 companies in 2020.
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