Lemonade Insiders Are Selling: Should Investors Be Worried?
Lemonade's (NYSE: LMND) novel approach to insurance combines artificial intelligence (AI) and big data to make its business more efficient. Rather than agents and forms, the company uses AI-powered chatbots to sell policies and pay claims, creating a faster, more enjoyable customer experience. Lemonade also donates a portion of excess premiums to charity in an attempt to win customer trust and loyalty.
Given the multitrillion dollar size of the insurance market, many investors are excited about the company's long-term prospects. But since hitting a 52-week high in January, shares of Lemonade have dropped about 50%. And during that period, three insiders sold over 1.3 million shares. Should investors be worried?
Since December, Chief Financial Officer (CFO) Timothy Bixby has sold 90,000 shares, valued at $10.8 million. Co-founder and CEO Daniel Schreiber has unloaded 687,500 shares, pocketing roughly $80.4 million. And fellow co-founder and Chief Operating Officer (COO) Shai Wininger has sold another 536,500 shares, totaling $63.1 million.
Source Fool.com
