Life360 (NASDAQ:LIF) Shares Gap Up - Still a Buy?

Key Points

• Life360 shares jumped: The stock opened at $52.04 after closing at $48.86 and last traded at $52.59. The company has a $4.32 billion market capitalization and a beta of 2.34.
• Analyst sentiment is generally positive: Life360 has a consensus “Moderate Buy” rating from analysts, with a target price of $64.81; recent targets range from $42.00 to $66.65.
• Insiders have been selling shares: Company insiders sold 57,006 shares valued at approximately $2.6 million during the last quarter, while insiders retain a 6.8% ownership stake. Institutional investors own about 20% of the stock.

Life360, Inc. (NASDAQ:LIF - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $48.86, but opened at $52.04. Life360 shares last traded at $52.59, with a volume of 45,254 shares traded.

Analyst Ratings Changes

A number of brokerages have commented on LIF. Morgan Stanley initiated coverage on shares of Life360 in a research report on Tuesday, July 21st. They set an "overweight" rating and a $66.24 price target on the stock. Macquarie Infrastructure initiated coverage on shares of Life360 in a report on Tuesday, April 28th. They issued an "outperform" rating and a $32.20 price objective for the company. DA Davidson upped their price objective on shares of Life360 from $40.00 to $42.00 and gave the company a "neutral" rating in a research note on Monday, June 22nd. Citigroup upped their price objective on shares of Life360 from $60.15 to $66.65 and gave the company a "buy" rating in a research note on Monday, July 6th. Finally, UBS Group reduced their target price on shares of Life360 from $75.00 to $64.00 and set a "buy" rating on the stock in a report on Tuesday, May 12th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $64.81.

Life360 Stock Performance

The company has a market cap of $4.32 billion, a P/E ratio of 30.71 and a beta of 2.34. The business has a 50 day moving average price of $48.93 and a two-hundred day moving average price of $48.63. The company has a debt-to-equity ratio of 0.52, a quick ratio of 5.23 and a current ratio of 5.37.

Insider Buying and Selling

In related news, Director Brit Morin sold 4,655 shares of Life360 stock in a transaction on Monday, June 29th. The shares were sold at an average price of $55.00, for a total value of $256,025.00. Following the transaction, the director directly owned 25,975 shares of the company's stock, valued at $1,428,625. The trade was a 15.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles J. Prober sold 7,930 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $46.07, for a total transaction of $365,335.10. Following the sale, the director owned 109,911 shares of the company's stock, valued at $5,063,599.77. This represents a 6.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 57,006 shares of company stock valued at $2,614,066 over the last quarter. Company insiders own 6.80% of the company's stock.

Hedge Funds Weigh In On Life360

A number of hedge funds have recently modified their holdings of LIF. Handelsbanken Fonder AB raised its stake in shares of Life360 by 2.4% during the second quarter. Handelsbanken Fonder AB now owns 25,300 shares of the company's stock valued at $1,401,000 after acquiring an additional 600 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of Life360 by 44.0% in the second quarter. GAMMA Investing LLC now owns 1,861 shares of the company's stock worth $103,000 after purchasing an additional 569 shares during the last quarter. Pacer Advisors Inc. purchased a new position in Life360 during the 1st quarter valued at about $76,000. Bank of America Corp DE increased its holdings in Life360 by 312.8% during the 1st quarter. Bank of America Corp DE now owns 407,296 shares of the company's stock valued at $16,626,000 after purchasing an additional 308,632 shares during the period. Finally, Amundi bought a new position in Life360 during the 1st quarter valued at approximately $206,000. Hedge funds and other institutional investors own 20.00% of the company's stock.

About Life360

Life360, Inc NASDAQ: LIF operates a location-based safety and communication platform designed to help families stay connected and secure. Through its flagship mobile application, Life360 offers real-time location sharing, check-in alerts and geofencing tools that enable users to monitor the whereabouts of family members or other trusted circles. The company's services extend to emergency response features, including SOS alerts, 24/7 roadside assistance and crash detection capabilities powered by machine-learning algorithms, all aimed at enhancing user safety on the road and at home.

The Life360 platform is offered under a freemium model, with a basic no-cost tier providing essential location sharing and alerts.

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