Life360 (NASDAQ:LIF) Stock Falls 4.4% - Should You Sell?

Key Points

• Life360 shares fell 4.4% to about $42.10 in mid-day trading, while volume was 94% below the average daily level.
• Analysts maintain a consensus “Moderate Buy” rating with a $59.94 target price, implying substantial upside from the current price, though ratings range from Hold to Buy.
• The company slightly exceeded revenue expectations but missed quarterly EPS estimates; meanwhile, insiders sold approximately $21.3 million of stock during the last quarter.

Life360, Inc. (NASDAQ:LIF - Get Free Report) was down 4.4% during mid-day trading on Tuesday. The stock traded as low as $42.06 and last traded at $42.1010. Approximately 53,117 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 945,772 shares. The stock had previously closed at $44.02.

Analyst Ratings Changes

Several research firms have weighed in on LIF. Weiss Ratings upgraded shares of Life360 from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, September 4th. DA Davidson reaffirmed a "neutral" rating and issued a $40.00 price objective on shares of Life360 in a research note on Tuesday, September 29th. UBS Group reduced their price objective on shares of Life360 from $64.00 to $60.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. Wall Street Zen raised shares of Life360 from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Finally, Bank of America boosted their target price on shares of Life360 from $60.00 to $66.00 and gave the stock a "buy" rating in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Life360 presently has a consensus rating of "Moderate Buy" and a consensus target price of $59.94.

Life360 Trading Down 2.1%

The company has a debt-to-equity ratio of 0.51, a current ratio of 5.60 and a quick ratio of 5.46. The firm's fifty day moving average is $42.79 and its two-hundred day moving average is $47.66. The firm has a market capitalization of $3.51 billion, a PE ratio of 25.16 and a beta of 2.27.

Life360 (NASDAQ:LIF - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported $0.06 EPS for the quarter, missing the consensus estimate of $0.08 by ($0.02). Life360 had a net margin of 25.73% and a return on equity of 5.66%. The firm had revenue of $158.96 million during the quarter, compared to analysts' expectations of $156.68 million. On average, equities analysts predict that Life360, Inc. will post 0.53 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Alex Haro sold 50,000 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $40.88, for a total transaction of $2,044,000.00. Following the completion of the sale, the director directly owned 1,010,303 shares of the company's stock, valued at approximately $41,301,186.64. This trade represents a 4.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Synge sold 27,466 shares of the stock in a transaction that occurred on Wednesday, August 26th. The shares were sold at an average price of $44.31, for a total value of $1,217,018.46. Following the sale, the director directly owned 191,694 shares of the company's stock, valued at $8,493,961.14. The trade was a 12.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 456,790 shares of company stock valued at $21,269,295 over the last quarter. Corporate insiders own 6.80% of the company's stock.

Institutional Investors Weigh In On Life360

Large investors have recently made changes to their positions in the business. Principal Financial Group Inc. raised its stake in shares of Life360 by 455.0% during the 1st 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 period. Bank of America Corp DE grew its position in Life360 by 312.8% during the first quarter. Bank of America Corp DE now owns 407,296 shares of the company's stock valued at $16,626,000 after buying an additional 308,632 shares during the period. Bank of New York Mellon Corp bought a new position in Life360 during the second quarter valued at about $15,547,000. Greenspring Advisors LLC purchased a new stake in Life360 during the second quarter worth about $9,592,000. Finally, Legal & General Group Plc purchased a new stake in Life360 during the second quarter worth about $9,467,000. 20.00% of the stock is owned by hedge funds and other institutional investors.

About Life360

Life360, Inc is a technology company that develops connected safety and security products for families, individuals and pets. Its primary offering is the Life360 mobile application, which provides location sharing, family communication, driving safety tools, emergency assistance and other features intended to help users coordinate and stay connected.

The company also offers services such as crash detection, roadside assistance, SOS support and digital safety features. Through its ownership of Tile, Life360 provides Bluetooth-enabled finding devices and related tracking services for personal belongings.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.