Lemonade Inc. co-founder and CEO Daniel Schreiber speaks on stage during the first day of TechCrunch Disrupt SF 2018 at the 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 prepared to end the company’s preferred sale restrictions on Tuesday.
Lemonade has been one of the best performing companies to go public this year. Shares have risen more than 300% above their initial bid price in July. However, approximately 44 million shares will be eligible for sale as of Tuesday and traders are preparing for potential volatility.
Lemonade, launched in 2016, offers insurance to tenants and landlords. Use artificial intelligence and chatbots to make it easier and faster to find and buy insurance. Investors believe the company could soon venture into more markets, such as auto insurance, which has helped boost stocks.
“We believe Lemonade is well positioned to take part (quickly) in the billion-dollar insurance industry one product at a time,” JMP Securities analysts wrote in a December note.
Lemonade was named one of CNBC Disruptor’s 50 companies in 2020, ranking at number 17.
Subscribe to CNBC on YouTube.