Lemonade Inc. co-founder and CEO Daniel Schreiber speaks on stage on Day 1 of TechCrunch Disrupt SF 2018 at Moscone Center on September 5, 2018 in San Francisco, California.
Kimberly White | Getty Images
Shares of online insurance company Lemonade fell as much as 15% on Monday as investors prepare to end the company’s internal sales restrictions on Tuesday.
Lemonade was among the best performing companies that went public this year. Shares rose more than 300% above its initial bid price in July. However, about 44 million shares will be eligible for sale starting Tuesday, and traders are preparing for potential volatility.
Lemonade, launched in 2016, offers insurance to tenants and homeowners. Use artificial intelligence and chatbots to make finding and buying insurance easier and faster. Investors believe the company could soon venture into more markets, such as car insurance, which has helped send larger stocks.
“We believe that Lemonade is well positioned to take over (quickly) its share of the billion-dollar insurance industry, one product at a time,” JMP Securities analysts wrote in a December note.
Lemonade was named among the CNBC Disruptor 50 companies in 2020, ranking 17th.
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