Have Life360 Insiders Been Selling Stock?

Some Life360, Inc. (ASX:360) shareholders may be a little concerned to see that the Independent Non-Executive Director, James Synge, recently sold a substantial AU$4.0m worth of stock at a price of AU$18.67 per share. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.

View our latest analysis for Life360

The Last 12 Months Of Insider Transactions At Life360

Notably, that recent sale by Independent Non-Executive Director James Synge was not the only time they sold Life360 shares this year. They previously made an even bigger sale of -AU$6.5m worth of shares at a price of AU$41.01 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$16.96. So it may not tell us anything about how insiders feel about the current share price.

James Synge sold a total of 370.12k shares over the year at an average price of US$28.23. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Life360 better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Life360 Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Life360 insiders own 5.6% of the company, currently worth about AU$213m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Life360 Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Life360. For example - Life360 has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.