Metromile’s shares are now trading slightly above the 52-week low they reached on December 6. Recently, insurance company Lemonade (LMND) agreed to purchase MILE in an all-stock transaction, which is expected to bolster MILE’s overall performance. However, considering MILE’s weak bottom line and bleak profit margins, is the stock an ideal investment now? Keep reading. Metromile, Inc., a data science-powered automobile insurance company, provides pay per mile car insurance services throughout the United States. Stocks of the San Francisco-based company have fallen 80.7% and 84.2% over the last year to close at $2.46 in their most recent trading session. It is trading at a level below both its 50-day- and 200-day moving medians. The stock also trades slightly lower than its December 6th 52-week high of $2.09.

In November, artificial intelligence (AI) powered insurance company Lemonade, Inc. (LMND) and MILE agreed to LMND’s acquisition of MILE in an all-stock transaction that implies a fully diluted approximate equity value of $500 million, or just over $200 million net of cash. MILE shareholders are entitled to LMND shares in a ratio 19:1. It is anticipated that the deal will close in the second quarter 2022. “Joining forces with Lemonade Car will create the most customer-centric, fair, and affordable car insurance, and is a great outcome for Metromile shareholders, who will benefit as shareholders of the combined company,” said Dan Preston, CEO of MILE. MILE shares dropped 20.1% during the month.

Following the acquisition news, several law firms, including Halper Sadeh LLP, a global investor rights law firm, WeissLaw LLP, Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, have initiated investigations of MILE regarding potential violations of the federal securities laws and breaches of fiduciary duties by the company’s board of directors relating to the proposed acquisition of the company by LMND.

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