Why Lemonade Stock Was Mashing the Market Today
Lemonade (NYSE: LMND) isn't wasting any time concocting a new recipe for its business, and investors were rewarding the company for this. On Monday, following the announcement of an asset divestment, the next-generation insurance provider's shares were rising by almost 9% in late afternoon trading.
This morning, Lemonade announced in a tersely worded press release that it has sold off the enterprise business solutions (EBS) operation of recently acquired Metromile. The buyer is digital insurance platform operator EIS. Neither the price nor the terms of the deal were disclosed; Lemonade only said that it was effected entirely in cash, and that it occurred after Lemonade's buyout of Metromile.
Investors clearly weren't concerned about the price the EBS unit might have fetched. Instead, they were likely cheered that Lemonade is being active and effective in shaping its brand-new business unit to suit its needs.
Source Fool.com
