Life360 (NASDAQ:LIF) Shares Gap Up - What's Next?

Key Points

• Life360 shares rose 7.2%, opening at $42.96 versus the prior close of $40.30, with the stock last trading near $43.02.
• Analysts maintain a generally positive outlook, with an average “Moderate Buy” rating and a consensus price target of $59.94, despite Citigroup cutting its target to $60.10 and DA Davidson maintaining a neutral rating.
• Life360 reported quarterly revenue of $158.96 million, exceeding estimates, but earnings per share of $0.06 missed the $0.08 consensus. Insiders sold approximately $18.7 million of stock over the past three months.

Life360, Inc. (NASDAQ:LIF - Get Free Report) shares gapped up prior to trading on Friday. The stock had previously closed at $40.30, but opened at $42.96. Life360 shares last traded at $43.0210, with a volume of 117,980 shares changing hands.

Analyst Ratings Changes

Several brokerages have recently commented on LIF. Citigroup reduced their price objective on shares of Life360 from $66.65 to $60.10 and set a "buy" rating for the company in a research report on Thursday, August 13th. Weiss Ratings raised shares of Life360 from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, September 4th. Morgan Stanley set a $65.20 price target on shares of Life360 in a report on Wednesday, August 12th. DA Davidson reaffirmed a "neutral" rating and issued a $40.00 price target on shares of Life360 in a research note on Tuesday. Finally, Wall Street Zen upgraded shares of Life360 from a "sell" rating to a "hold" rating in a report on Saturday, September 19th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $59.94.

Life360 Trading Up 7.2%

The company has a quick ratio of 5.46, a current ratio of 5.60 and a debt-to-equity ratio of 0.51. The firm's 50-day moving average price is $46.92 and its 200 day moving average price is $46.13. The company has a market capitalization of $3.52 billion, a P/E ratio of 25.25 and a beta of 2.27.

Life360 (NASDAQ:LIF - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported $0.06 earnings per share for the quarter, missing analysts' consensus estimates of $0.08 by ($0.02). Life360 had a return on equity of 5.66% and a net margin of 25.73%.The business had revenue of $158.96 million during the quarter, compared to analyst estimates of $156.68 million. As a group, equities research analysts predict that Life360, Inc. will post 0.53 earnings per share for the current year.

Insider Activity

In related news, Director John Coghlan sold 4,000 shares of Life360 stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $41.97, for a total transaction of $167,880.00. Following the transaction, the director owned 16,431 shares of the company's stock, valued at $689,609.07. The trade was a 19.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Charles Prober sold 7,930 shares of the company's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $42.12, for a total value of $334,011.60. Following the sale, the director owned 109,930 shares of the company's stock, valued at $4,630,251.60. This trade represents a 6.73% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 394,860 shares of company stock worth $18,692,525. Company insiders own 6.80% of the company's stock.

Hedge Funds Weigh In On Life360

A number of hedge funds have recently bought and sold shares of LIF. Geode Capital Management LLC grew its stake in shares of Life360 by 8.0% in the 4th quarter. Geode Capital Management LLC now owns 1,153,096 shares of the company's stock worth $74,372,000 after acquiring an additional 85,857 shares in the last quarter. Norges Bank bought a new position in shares of Life360 during the fourth quarter valued at about $47,097,000. Greenspring Advisors LLC bought a new position in shares of Life360 during the fourth quarter valued at about $21,720,000. Principal Financial Group Inc. boosted its holdings in Life360 by 455.0% during the first quarter. Principal Financial Group Inc. now owns 463,442 shares of the company's stock worth $18,918,000 after purchasing an additional 379,941 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in Life360 by 312.8% during the first quarter. Bank of America Corp DE now owns 407,296 shares of the company's stock worth $16,626,000 after purchasing an additional 308,632 shares during the last quarter. 20.00% of the stock is owned by hedge funds and other institutional investors.

About Life360

Life360, Inc is a technology company that develops products designed to help families and groups stay connected, coordinate activities and improve personal safety. Its flagship Life360 mobile application provides location sharing, communication tools, driving-related features, emergency assistance and other services intended for family and community use.

The company also operates Tile, a brand of Bluetooth-enabled item-finding devices and related software that helps users locate keys, luggage, electronics and other belongings.

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