Stock in insurance company Lemonade (LMND), one of this year’s hottest IPOs, have been falling as the lockup period for insiders to sell expired on Tuesday. Its share price had soared to more than $135 last month, up from its IPO price of $29 in early July.
Roughly 44 million additional shares became available to be sold on Tuesday, typically a bearish event for any new listing. And so, its price fell to as low as $107 on Monday, before recovering on Tuesday, rising 10.6% to $118. This was the second lockup expiry since the IPO, but this one was a much larger chunk of shares, with the 44 million shares representing more than three-quarters of all outstanding stock in the company.