Ibotta, Inc. (NYSE:IBTA) Receives Average Rating of "Reduce" from Analysts

Key Points

• Analysts are cautious on Ibotta, with the stock receiving a consensus rating of “Reduce” from 10 firms. The average 12-month price target is $33, slightly below where the shares were trading in the article.
• Recent earnings were mixed but better than expected: Ibotta reported $0.24 EPS, beating forecasts, while revenue came in at $82.48 million and fell 2.5% year over year. The company also remains unprofitable on a net margin and return-on-equity basis.
• Management has authorized a $100 million stock buyback, which could cover up to 21.2% of outstanding shares and may signal confidence the stock is undervalued. At the same time, insiders have been selling shares, including notable transactions by an executive and a director.

Ibotta, Inc. (NYSE:IBTA - Get Free Report) has received a consensus recommendation of "Reduce" from the ten ratings firms that are covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and one has assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $33.00.

IBTA has been the topic of a number of research reports. Zacks Research downgraded shares of Ibotta from a "hold" rating to a "strong sell" rating in a research report on Friday, May 8th. Wall Street Zen upgraded shares of Ibotta from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Evercore set a $40.00 price objective on shares of Ibotta in a report on Thursday, May 7th. Needham & Company LLC upped their price objective on shares of Ibotta from $33.00 to $45.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Ibotta in a report on Friday, March 27th.

Ibotta Stock Up 2.0%

Ibotta stock opened at $34.58 on Friday. Ibotta has a 12-month low of $19.10 and a 12-month high of $50.50. The firm's fifty day moving average is $32.63 and its 200 day moving average is $26.30. The company has a market capitalization of $698.52 million, a PE ratio of -101.71 and a beta of -0.61.

Ibotta (NYSE:IBTA - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.21) by $0.45. Ibotta had a negative net margin of 2.15% and a negative return on equity of 2.39%. The company had revenue of $82.48 million for the quarter. During the same quarter in the previous year, the firm earned $0.02 EPS. The firm's revenue was down 2.5% on a year-over-year basis. Sell-side analysts expect that Ibotta will post 0.24 EPS for the current fiscal year.

Ibotta declared that its board has authorized a stock buyback program on Wednesday, March 11th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to reacquire up to 21.2% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at Ibotta

In other Ibotta news, insider Marisa Daspit sold 2,956 shares of the company's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $24.06, for a total transaction of $71,121.36. Following the transaction, the insider owned 127,597 shares in the company, valued at approximately $3,069,983.82. This represents a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Thomas D. Lehrman sold 30,119 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $30.78, for a total transaction of $927,062.82. Following the transaction, the director owned 40,744 shares in the company, valued at approximately $1,254,100.32. The trade was a 42.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 104,717 shares of company stock worth $3,294,475. Corporate insiders own 20.92% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of IBTA. Essential Partners LLC raised its holdings in shares of Ibotta by 40,800.0% in the first quarter. Essential Partners LLC now owns 818 shares of the company's stock valued at $25,000 after purchasing an additional 816 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Ibotta by 17.8% in the first quarter. Bank of America Corp DE now owns 239,167 shares of the company's stock valued at $7,168,000 after purchasing an additional 36,223 shares during the last quarter. Renaissance Technologies LLC raised its holdings in shares of Ibotta by 17.7% in the first quarter. Renaissance Technologies LLC now owns 239,300 shares of the company's stock valued at $7,172,000 after purchasing an additional 35,992 shares during the last quarter. Sei Investments Co. purchased a new stake in shares of Ibotta in the first quarter valued at about $344,000. Finally, Meeder Asset Management Inc. purchased a new stake in shares of Ibotta in the first quarter valued at about $39,000.

Ibotta Company Profile

Ibotta NYSE: IBTA is a Denver‐based mobile commerce platform that connects consumers, retailers and brands through a unified cash-back rewards experience. Users access the Ibotta mobile app or browser extension to unlock rebates on everyday purchases, redeemable on groceries, retail goods, travel bookings and digital services. The platform integrates with major supermarket chains, big‐box retailers and online merchants, enabling shoppers to earn automatic cash-back both in physical stores and across e-commerce channels.

Founded in 2012 by co‐founder and CEO Bryan Leach, Ibotta has evolved from a simple rebate app into a comprehensive performance marketing partner for consumer goods companies.

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