Life360 (NASDAQ:LIF) Shares Gap Down – Here’s What Happened

Life360, Inc. (NASDAQ:LIF) gapped down prior to trading on Tuesday. The stock had previously closed at $45.02, but opened at $42.25. Life360 shares last traded at $45.0340, with a volume of 456,549 shares trading hands.

Key Stories Impacting Life360

Here are a few of the latest stories about LIF:

• Positive Sentiment: Shares recovered after the earnings-related selloff as investors bought the dip; Life360 was among the stronger performers on the Australian market. Life360 shares rebound after earnings selloff
• Neutral Sentiment: Citigroup lowered its price target from $60 to $56.60 but maintained a Buy rating. The reduced target tempers the positive recommendation. Citigroup stock recommendations
• Negative Sentiment: Bank of America downgraded Life360 from Buy to Neutral and cut its target from $60 to $45, signaling less confidence in near-term upside. Tickerreport coverage of analyst action

Analyst Ratings Changes

LIF has been the topic of a number of research analyst reports. Bank of America cut Life360 from a “buy” rating to a “neutral” rating and cut their target price for the stock from $60.00 to $45.00 in a research report on Wednesday. Weiss Ratings raised Life360 from a “hold (c-)” rating to a “hold (c)” rating in a research report on Friday, September 4th. Wall Street Zen upgraded Life360 from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Morgan Stanley set a $65.20 price target on Life360 in a research report on Wednesday, August 12th. Finally, DA Davidson reiterated a “neutral” rating and issued a $40.00 price objective on shares of Life360 in a research note on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $55.56.

Life360 Stock Performance

The stock’s 50-day moving average is $42.91 and its 200 day moving average is $46.73. The stock has a market cap of $3.64 billion, a price-to-earnings ratio of 24.01 and a beta of 2.17. The company has a debt-to-equity ratio of 0.49, a current ratio of 5.31 and a quick ratio of 5.46.

Life360 (NASDAQ:LIF) last released its earnings results on Monday, November 9th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.05. The company had revenue of $174.14 million for the quarter, compared to analysts’ expectations of $171.53 million. Life360 had a return on equity of 7.21% and a net margin of 25.71%. As a group, analysts predict that Life360, Inc. will post 0.53 earnings per share for the current fiscal year.

Insider Transactions at Life360

In related news, Director Charles J. Prober sold 7,930 shares of Life360 stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $43.29, for a total value of $343,289.70. Following the sale, the director directly owned 109,930 shares in the company, valued at $4,758,869.70. The trade was a 6.73% decrease in their ownership of the stock. The transaction 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 James Synge sold 27,466 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $44.31, for a total value of $1,217,018.46. Following the transaction, the director directly owned 191,694 shares in the company, valued at $8,493,961.14. This represents a 12.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 411,159 shares of company stock valued at $18,495,656. 6.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Life360

Several hedge funds and other institutional investors have recently bought and sold shares of the company. The Manufacturers Life Insurance Company purchased a new position in shares of Life360 in the second quarter valued at $1,444,000. California State Teachers Retirement System raised its stake in shares of Life360 by 23.5% during the 1st quarter. California State Teachers Retirement System now owns 86,635 shares of the company’s stock worth $3,536,000 after buying an additional 16,461 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Life360 during the 2nd quarter worth $15,547,000. Vise Technologies Inc. purchased a new stake in shares of Life360 in the 3rd quarter worth about $1,455,000. Finally, Landscape Capital Management L.L.C. purchased a new stake in shares of Life360 in the 2nd quarter worth about $2,648,000. 20.00% of the stock is owned by institutional investors and hedge funds.

About Life360

Life360 operates a family safety and location-sharing platform. Its mobile app helps families and other groups share locations, coordinate their activities and receive alerts about arrivals, departures and other events. The service also includes features such as driving insights, roadside assistance and emergency support. The company’s offerings include the Life360 app and Tile, its line of Bluetooth tracking devices and related services for finding everyday items. Together, these products provide location and safety tools for people, pets and belongings.