Southpoint Capital Advisors LP Buys 499,556 Shares of Ibotta, Inc. $IBTA

Key Points

• Southpoint Capital Advisors LP increased its stake in Ibotta, Inc. by 48.2%, now owning 1,536,500 shares worth approximately $64.8 million, making it the firm's 25th largest holding.
• Insider trading reports indicate that significant shares were sold, with CMO Richard I. Donahue selling 85,289 shares and major shareholder Jermoluk Founders Fund I. Clark selling over 1.57 million shares.
• Several analysts have downgraded Ibotta's stock ratings recently, with price targets dropping significantly, indicating potential concerns about the company's future performance.

Southpoint Capital Advisors LP grew its stake in Ibotta, Inc. (NYSE:IBTA - Free Report) by 48.2% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,536,500 shares of the company's stock after purchasing an additional 499,556 shares during the quarter. Ibotta makes up approximately 1.5% of Southpoint Capital Advisors LP's investment portfolio, making the stock its 25th largest holding. Southpoint Capital Advisors LP owned approximately 4.95% of Ibotta worth $64,840,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of the stock. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in Ibotta in the 1st quarter valued at about $25,000. New York State Common Retirement Fund increased its stake in shares of Ibotta by 58.1% during the first quarter. New York State Common Retirement Fund now owns 4,900 shares of the company's stock worth $207,000 after purchasing an additional 1,800 shares during the period. Federated Hermes Inc. lifted its holdings in Ibotta by 883.9% during the 1st quarter. Federated Hermes Inc. now owns 6,740 shares of the company's stock worth $284,000 after purchasing an additional 6,055 shares during the last quarter. Invesco Ltd. boosted its stake in Ibotta by 53.6% in the 1st quarter. Invesco Ltd. now owns 7,962 shares of the company's stock valued at $336,000 after purchasing an additional 2,780 shares during the period. Finally, Meeder Asset Management Inc. acquired a new position in Ibotta in the 1st quarter valued at $388,000.

Insider Activity

In other Ibotta news, CMO Richard I. Donahue sold 85,289 shares of Ibotta stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $43.09, for a total value of $3,675,103.01. Following the transaction, the chief marketing officer owned 199,773 shares in the company, valued at $8,608,218.57. The trade was a 29.92% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of Ibotta stock in a transaction that occurred 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 sale, the insider directly owned 3,841,308 shares in the company, valued at $134,445,780. This trade represents a 29.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 2,133,669 shares of company stock worth $75,726,401 over the last ninety days. 16.08% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Citizens Jmp downgraded Ibotta from an "outperform" rating to a "market perform" rating in a report on Thursday, August 14th. Bank of America reissued an "underperform" rating and set a $24.00 price target (down previously from $57.00) on shares of Ibotta in a research report on Thursday, August 14th. Wall Street Zen cut Ibotta from a "hold" rating to a "sell" rating in a report on Saturday. Wells Fargo & Company reissued an "equal weight" rating and set a $30.00 target price (down from $60.00) on shares of Ibotta in a report on Thursday, August 14th. Finally, Evercore ISI restated an "in-line" rating and issued a $38.00 price target (down previously from $65.00) on shares of Ibotta in a research report on Thursday, August 14th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Ibotta presently has an average rating of "Hold" and a consensus price target of $34.71.

Ibotta Stock Performance

Shares of IBTA stock opened at $26.87 on Tuesday. Ibotta, Inc. has a fifty-two week low of $22.50 and a fifty-two week high of $79.80. The stock's fifty day moving average price is $33.90 and its two-hundred day moving average price is $44.77. The company has a market cap of $678.74 million, a PE ratio of 9.33, a P/E/G ratio of 21.55 and a beta of -1.30.

Ibotta declared that its Board of Directors has initiated a stock repurchase program on Monday, June 9th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to purchase up to 8.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

Ibotta Company Profile

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.

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