Lemonade Falls With Lockup to Expire After Year’s Best IPO

Lemonade Inc.’s  shares have soared on the promise of its digital platform in carving out a niche for renters and homeowners.

Photographer: Gabby Jones/Bloomberg
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The best-performing listing of 2020 is poised to enter the new year with extra volatility after insider selling restrictions expire this week. Shares fell as much as 13% on Monday, the most since Sept. 4 and worst in the Russell Midcap Index.

Insurance provider Lemonade Inc. is trading more than 350% above its July 1 initial public offering price, the best of any 2020 debut above $300 million, according to data compiled by Bloomberg. But roughly 44 million additional shares -- mostly held by insiders -- will be eligible for sale on Tuesday, according to the IPO prospectus.