Trader Robot's Strategic Trades Lead to a +3.29% Gain for LMND Last Week
The "Swing trader: Downtrend Protection v.2 (TA)" bot, which recently demonstrated its capabilities by generating a significant gain of +3.29% while trading LMND (Lemonade Inc.) over the previous week. In this article, we will delve into the recent performance of these AI trading robots and analyze LMND's earnings results to provide valuable insights for traders and investors.
Analyzing LMND's Shifting Trend:
On June 14, 2023, the 10-day Relative Strength Index (RSI) Oscillator for LMND moved out of overbought territory. This development suggests a potential shift from an upward trend to a downward trend in the stock's price. Traders who closely monitor technical indicators may consider selling the stock or acquiring put options to capitalize on this changing market sentiment.
To assess the likelihood of a downward move, Tickeron's A.I.dvisor examined 13 previous instances where the RSI indicator moved out of the overbought zone. Remarkably, in 12 out of the 13 cases, the stock experienced a subsequent decline. Based on this historical analysis, the odds of a move down in LMND's price are estimated at 90%, further emphasizing the potential bearish outlook.
Earnings Report Highlights:
The most recent earnings report for LMND, released on May 03, revealed an earnings per share (EPS) of -94 cents, surpassing the estimated value of -112 cents. Despite reporting negative earnings, the better-than-expected results indicate the company's ability to mitigate losses. With 313.93K shares outstanding, the current market capitalization of LMND stands at approximately 1.34 billion dollars.
Summary:
The utilization of AI trading bots, such as the "Swing trader: Downtrend Protection v.2 (TA)" bot, has proven to be fruitful for traders seeking automated assistance in navigating the complexities of the financial markets. Notably, these bots achieved a noteworthy gain of +3.29% while trading LMND, even amidst a potential shift in the stock's trend.
The analysis of LMND's 10-day RSI Oscillator indicates a high probability of a downward move, with historical data suggesting an 90% chance of a decline following the indicator's exit from overbought territory. Additionally, the recent earnings report showed that LMND exceeded earnings expectations, showcasing the company's ability to manage losses effectively.
Momentum Indicator for LMND turns negative, indicating new downward trend
LMND saw its Momentum Indicator move below the 0 level on September 07, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 53 similar instances where the indicator turned negative. In of the 53 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LMND declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LMND entered a downward trend on September 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for LMND just turned positive on August 30, 2023. Looking at past instances where LMND's MACD turned positive, the stock continued to rise in of 30 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LMND advanced for three days, in of 162 cases, the price rose further within the following month. The odds of a continued upward trend are .
LMND may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.057) is normal, around the industry mean (1.970). P/E Ratio (0.000) is within average values for comparable stocks, (40.940). LMND's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.025). LMND has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.044). P/S Ratio (2.219) is also within normal values, averaging (1.246).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. LMND’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LMND’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an insurance holding company, which engages in the provision of home and renters insurance services
Industry PropertyCasualtyInsurance
LMND and
Correlation & Price change
A.I.dvisor indicates that over the last year, LMND has been loosely correlated with ROOT. These tickers have moved in lockstep 49% of the time. This A.I.-generated data suggests there is some statistical probability that if LMND jumps, then ROOT could also see price increases.
| Ticker / NAME | Correlation To LMND | 1D Price Change % | ||
|---|---|---|---|---|
| LMND | 100% | -2.65% | ||
| ROOT - LMND | 49% Loosely correlated | -1.52% | ||
| PLMR - LMND | 42% Loosely correlated | -1.31% | ||
| SIGIP - LMND | 34% Loosely correlated | -0.90% | ||
| CINF - LMND | 34% Loosely correlated | -1.35% | ||
| STC - LMND | 32% Poorly correlated | +0.18% | ||
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