Life360 (NASDAQ:LIF) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Life360's stock price gapped up significantly after UBS Group raised its price target from $71.00 to $85.00, opening at $80.51 from a previous close of $73.74.
• A wave of analyst upgrades has occurred, with multiple firms increasing their price targets above $85.00, reflecting a consensus "Moderate Buy" rating for the stock.
• Insider trading activity has been noted, with directors selling significant shares recently, indicating a 9.50% and 7.00% decrease in their respective holdings.

Life360, Inc. (NASDAQ:LIF - Get Free Report)'s share price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $73.74, but opened at $80.51. Life360 shares last traded at $80.23, with a volume of 451,983 shares traded.

The company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.02 by $0.06. Life360 had a return on equity of 7.65% and a net margin of 6.45%. The firm had revenue of $115.38 million for the quarter, compared to the consensus estimate of $109.33 million.

Analysts Set New Price Targets

LIF has been the topic of several recent analyst reports. Evercore ISI lifted their target price on Life360 from $55.00 to $95.00 and gave the company an "outperform" rating in a research note on Tuesday. Citigroup initiated coverage on Life360 in a research note on Thursday, July 31st. They set a "buy" rating and a $90.00 target price on the stock. Canaccord Genuity Group lifted their target price on Life360 from $86.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday. Wall Street Zen downgraded Life360 from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Finally, Loop Capital lifted their target price on Life360 from $52.00 to $58.00 and gave the company a "buy" rating in a research note on Tuesday, May 13th. One investment analyst has rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, Life360 has an average rating of "Moderate Buy" and an average target price of $86.43.

Insiders Place Their Bets

In other Life360 news, COO Lauren Antonoff sold 4,546 shares of Life360 stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $62.50, for a total transaction of $284,125.00. Following the completion of the sale, the chief operating officer directly owned 312,324 shares of the company's stock, valued at $19,520,250. The trade was a 1.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Brit Morin sold 47,584 shares of Life360 stock in a transaction on Friday, June 13th. The shares were sold at an average price of $61.14, for a total value of $2,909,285.76. Following the sale, the director directly owned 26,442 shares of the company's stock, valued at approximately $1,616,663.88. This trade represents a 64.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 112,793 shares of company stock worth $7,156,984 in the last 90 days. 8.00% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in Life360 by 3,865.6% during the 1st quarter. Vanguard Group Inc. now owns 5,683,626 shares of the company's stock valued at $218,194,000 after purchasing an additional 5,540,302 shares during the last quarter. Millennium Management LLC grew its stake in Life360 by 9.2% during the 4th quarter. Millennium Management LLC now owns 1,114,922 shares of the company's stock valued at $46,013,000 after purchasing an additional 94,077 shares during the last quarter. Norges Bank purchased a new stake in Life360 during the 2nd quarter valued at about $60,369,000. Bank of New York Mellon Corp grew its stake in Life360 by 25.1% during the 2nd quarter. Bank of New York Mellon Corp now owns 687,269 shares of the company's stock valued at $44,844,000 after purchasing an additional 137,997 shares during the last quarter. Finally, Marshall Wace LLP grew its stake in Life360 by 86.2% during the 4th quarter. Marshall Wace LLP now owns 411,326 shares of the company's stock valued at $16,975,000 after purchasing an additional 190,422 shares during the last quarter. 20.00% of the stock is owned by institutional investors and hedge funds.

Life360 Trading Down 4.1%

The company has a debt-to-equity ratio of 0.84, a quick ratio of 3.25 and a current ratio of 7.14. The company has a 50 day simple moving average of $69.30 and a two-hundred day simple moving average of $53.52. The firm has a market cap of $6.62 billion, a PE ratio of 266.66 and a beta of 3.46.

Life360 Company Profile

Life360 Inc is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc is based in SAN FRANCISCO.