Citizens Jmp Reiterates Market Perform Rating for Ibotta (NYSE:IBTA)

Key Points

• Ibotta's stock was downgraded by Citizens Jmp from "outperform" to "market perform," reflecting a change in analysts' expectations.
• Various analysts have adjusted their price targets for Ibotta, with Needham & Company lowering it to $33 and Bank of America to $24, while UBS raised theirs to $55.
• Insider activity saw significant share sales, including a major shareholder offloading over 1.5 million shares, indicating potential concerns about stock value among insiders.

Ibotta (NYSE:IBTA - Get Free Report)'s stock had its "market perform" rating reiterated by research analysts at Citizens Jmp in a research note issued to investors on Thursday, MarketBeat Ratings reports.

A number of other brokerages have also recently commented on IBTA. Needham & Company LLC lowered their price target on Ibotta from $70.00 to $33.00 and set a "buy" rating for the company in a research report on Thursday. Bank of America reaffirmed an "underperform" rating and set a $24.00 target price (down previously from $57.00) on shares of Ibotta in a report on Thursday. UBS Group increased their price target on shares of Ibotta from $42.00 to $55.00 and gave the stock a "neutral" rating in a report on Thursday, May 15th. Wells Fargo & Company reissued an "equal weight" rating and set a $30.00 price target (down from $60.00) on shares of Ibotta in a research report on Thursday. Finally, Citigroup downgraded shares of Ibotta from a "buy" rating to a "market perform" rating in a report on Thursday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, Ibotta currently has a consensus rating of "Hold" and a consensus target price of $34.71.

Ibotta Trading Up 2.7%

Shares of IBTA stock traded up $0.63 during trading hours on Thursday, reaching $24.25. 1,708,012 shares of the company's stock were exchanged, compared to its average volume of 632,901. Ibotta has a 1 year low of $22.50 and a 1 year high of $79.80. The stock has a market cap of $612.56 million, a PE ratio of 8.42, a PEG ratio of 2.01 and a beta of -1.27. The stock's fifty day moving average price is $37.18 and its two-hundred day moving average price is $48.63.

Ibotta (NYSE:IBTA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 14th. The company reported $0.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.01. Ibotta had a net margin of 26.24% and a return on equity of 24.26%. The business had revenue of $84.57 million during the quarter, compared to analysts' expectations of $81.70 million. During the same quarter last year, the company posted $0.33 earnings per share. The business's quarterly revenue was up 2.8% on a year-over-year basis.

Ibotta announced that its board has approved a stock buyback program on Monday, June 9th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 8.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Ibotta

In other news, CMO Richard I. Donahue sold 85,289 shares of Ibotta stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $43.09, for a total transaction of $3,675,103.01. Following the completion of the transaction, the chief marketing officer directly owned 199,773 shares of the company's stock, valued at $8,608,218.57. The trade was a 29.92% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the business's stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $35.00, for a total transaction of $55,247,570.00. Following the completion of the transaction, the insider owned 3,841,308 shares of the company's stock, valued at approximately $134,445,780. This represents a 29.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 2,192,224 shares of company stock worth $78,652,577. Insiders own 16.08% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of IBTA. Nikko Asset Management Americas Inc. lifted its holdings in Ibotta by 5.1% during the second quarter. Nikko Asset Management Americas Inc. now owns 1,107,338 shares of the company's stock valued at $40,529,000 after purchasing an additional 53,820 shares in the last quarter. Tower Research Capital LLC TRC raised its position in shares of Ibotta by 144.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,851 shares of the company's stock worth $141,000 after purchasing an additional 2,274 shares during the last quarter. Man Group plc purchased a new position in Ibotta in the 2nd quarter valued at about $529,000. HRT Financial LP acquired a new stake in Ibotta in the 2nd quarter worth about $1,739,000. Finally, Engineers Gate Manager LP purchased a new stake in Ibotta during the 2nd quarter worth approximately $1,106,000.

About Ibotta

Ibotta's mission is to Make Every Purchase Rewarding. Our technology allows CPG brands to deliver digital promotions to over 200 million consumers through a single, convenient network called the Ibotta Performance Network (IPN). We are pioneers in success-based marketing: we only get paid when our client's promotion results in a sale, not when a consumer merely views or clicks on the promotion.