Ibotta (NYSE:IBTA) Board Declares Share Buyback Plan

Key Points

• The board approved a $100.0 million stock buyback, authorizing purchases of up to 21.2% of shares via open-market repurchases, signaling management believes the stock may be undervalued.
• Wall Street remains cautious with an average rating of “Reduce” (one Buy, five Hold, three Sell) and an average price target of $33.14, after several firms cut their targets recently.
• Ibotta recently reported EPS of ($0.04), missing estimates by $0.03 and showing revenue down 10% year-over-year; the shares trade near $21.96 with a market cap of about $465.8 million.

Ibotta (NYSE:IBTA - Get Free Report) announced that its board has approved a stock buyback program on Wednesday, March 11th, RTT News reports. The company plans to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to purchase up to 21.2% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on IBTA. Bank of America dropped their target price on shares of Ibotta from $24.00 to $22.00 and set an "underperform" rating on the stock in a research note on Thursday, November 13th. Weiss Ratings restated a "sell (d)" rating on shares of Ibotta in a report on Monday, December 29th. The Goldman Sachs Group cut their target price on Ibotta from $26.00 to $23.00 and set a "sell" rating on the stock in a research note on Thursday, November 13th. Evercore reduced their target price on Ibotta from $38.00 to $32.00 and set an "in-line" rating for the company in a report on Thursday, November 13th. Finally, Wells Fargo & Company boosted their price target on Ibotta from $30.00 to $34.00 and gave the stock an "equal weight" rating in a research note on Thursday, February 26th. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $33.14.

Ibotta Price Performance

Shares of NYSE:IBTA traded down $0.33 during midday trading on Wednesday, hitting $21.96. The company had a trading volume of 239,809 shares, compared to its average volume of 388,371. The company has a market cap of $465.77 million, a price-to-earnings ratio of 199.65 and a beta of -1.20. Ibotta has a 12-month low of $19.10 and a 12-month high of $62.74. The company has a fifty day moving average of $22.23 and a two-hundred day moving average of $25.22.

Ibotta (NYSE:IBTA - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.03). Ibotta had a net margin of 1.04% and a return on equity of 1.04%. The company had revenue of $88.53 million for the quarter. During the same period in the previous year, the business posted $0.67 EPS. The company's revenue for the quarter was down 10.0% compared to the same quarter last year.

Insider Buying and Selling

In other news, insider Marisa Daspit sold 2,956 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $24.06, for a total transaction of $71,121.36. Following the sale, the insider directly owned 127,597 shares of the company's stock, valued at $3,069,983.82. This represents a 2.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 16.08% of the stock is currently owned by insiders.

About Ibotta

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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