The stock lockup of online insurance company Lemonade (LMND  ) expired on Tuesday, prompting a single-day drop that was quickly rectified by a two-day rally shortly thereafter. Lemonade had its IPO earlier this year, being one of the biggest IPOs of 2020.

Lemonade had its IPO back in July, offering 11 million shares as it transitioned into a publicly-traded company. The company's IPO was extremely successful, with Lemonade netting a 140% gain. Lemonade experienced a bit of a down period after its IPO, not experiencing much growth but staying ahead of its IPO price of $29. As December approached, the company's stock began to rally.

As Lemonade's insider trading lockup inched closer to expiring, investors began to grow concerned, which caused Lemonade to lose 15% of its value on Monday. However, the fears appeared largely unfounded; despite trending downward for part of Tuesday, Lemonade's shares not only recovered, but they also rallied, driving shares to over four times its IPO price.

If the post-expiration rally proves anything about Lemonade, it's that insiders appear to be reasonably confident with the company's long-term prospects. It's hard not to see why given the insurance industry's scale, and the relative success Lemonade has had in such a short time. Lemonade also appears to be ready to keep that momentum going, based on its ambitious plans to expand into life insurance and extend operations into France. There remains plenty of obstacles for Lemonade in the future, especially with industry giants such as Allstate (ALL  ) and State Farm looming over the industry.

In the short term, Lemonade's momentum seems to be doing wonders for its share price. Shares slipped 9.5% on Monday due to fears of the lockup expiration, dropping to $107.66 from the week's opening price of $119. Once investor concerns turned out to be unfounded, Lemonade trended up, reaching $129.89 after Tuesday and Wednesday's respective rallies. Lemonade is up 9.2% for the week so far.