This Insider Has Just Sold Shares In Life360

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$1.7m worth of stock at a price of AU$68.91 per share. However, that sale only accounted for 4.2% of their holding, so arguably it doesn't say much about their conviction.

Check out 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 insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$21.00). So it is hard to draw any strong conclusion from it.

James Synge divested 420.12k shares over the last 12 months at an average price of US$33.05. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Life360 insiders own 5.8% of the company, worth about AU$276m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Life360 Insiders?

An insider sold Life360 shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Life360 and we suggest you have a look.

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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.