This Insider Has Just Sold Shares In Life360

We wouldn't blame Life360, Inc. (ASX:360) shareholders if they were a little worried about the fact that James Synge, the Independent Non-Executive Director recently netted about AU$1.7m selling shares at an average price of AU$68.57. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.7%.

See 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. Earlier in the year, they fetched AU$41.01 per share in a -AU$6.5m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$25.30. So it may not tell us anything about how insiders feel about the current share price.

James Synge sold a total of 395.12k shares over the year at an average price of US$30.78. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Life360

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Life360 insiders own about AU$327m worth of shares (which is 5.8% of the company). 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 Life360 shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Life360 that deserve your attention before buying any shares.

But note: Life360 may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.