PGR - Lemonade stock slumps the most since March after all-stock Metromile deal

Lemonade (NYSE:LMND) stock sinks 12%, its biggest drop since March, after the insurtech firm says it will pay for its pending acquisition of Metromile (NASDAQ:MILE), a tech-forward car insurer, with stock. Issuing more stock dilutes the stakes of existing shareholders. As a result, a company's stock price usually declines when it announces plans to issue more shares. In addition to that news, Lemonade's (LMND) Q3 loss per share was smaller than expected. But the company also disclosed it has increased spending on marketing to bring in new customers. Even before the plan to use stock for the Metromile purchase, SA's Quant rating issued a warning on Lemonade stock in August, saying it was at high risk of performing badly due to its lack of profit and decelerating momentum. In the past five trading sessions, Lemonade (LMND) stock drops more than its insurtech rival Root (NASDAQ:ROOT), as well as more traditional

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Lemonade stock slumps the most since March after all-stock Metromile deal