Ibotta (NYSE:IBTA) Given "Underperform" Rating at Bank of America

Key Points

• Bank of America has reaffirmed its "underperform" rating for Ibotta (NYSE:IBTA) and reduced its target price dramatically from $57.00 to $24.00, indicating a potential downside of 30.58% from current levels.
• Several other firms have also adjusted their ratings on Ibotta, with Goldman Sachs moving from a "buy" to "neutral," while Wells Fargo increased their target from $52.00 to $60.00 and maintained an "overweight" rating.
• Ibotta announced a stock repurchase plan allowing for the buyback of up to $100 million in shares, a move that typically signifies management's belief that the stock is undervalued.

Ibotta (NYSE:IBTA - Get Free Report)'s stock had its "underperform" rating reissued by stock analysts at Bank of America in a research report issued on Thursday, Marketbeat reports. They currently have a $24.00 price target on the stock, down from their previous price target of $57.00. Bank of America's target price points to a potential downside of 1.03% from the stock's current price.

IBTA has been the topic of a number of other reports. The Goldman Sachs Group cut Ibotta from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $58.00 to $30.00 in a report on Thursday. UBS Group lifted their target price on Ibotta from $42.00 to $55.00 and gave the stock a "neutral" rating in a report on Thursday, May 15th. Citigroup cut Ibotta from a "buy" rating to a "market perform" rating in a report on Thursday. Evercore ISI restated an "in-line" rating and issued a $38.00 target price (down from $65.00) on shares of Ibotta in a report on Thursday. Finally, Needham & Company LLC lifted their target price on Ibotta from $60.00 to $70.00 and gave the stock a "buy" rating in a report on Thursday, May 15th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $34.71.

Ibotta Stock Performance

Shares of IBTA stock traded up $0.63 during mid-day trading on Thursday, hitting $24.25. 1,708,012 shares of the stock traded hands, compared to its average volume of 632,901. Ibotta has a twelve month low of $22.50 and a twelve month high of $79.80. The firm has a market cap of $612.56 million, a price-to-earnings ratio of 8.42, a price-to-earnings-growth ratio of 2.01 and a beta of -1.27. The company's 50-day simple moving average is $37.18 and its 200-day simple moving average is $48.63.

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

Ibotta declared that its Board of Directors has authorized a share repurchase plan on Monday, June 9th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to buy up to 8.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Ibotta

Institutional investors have recently made changes to their positions in the business. ARK Investment Management LLC raised its holdings in Ibotta by 299.8% in the 1st quarter. ARK Investment Management LLC now owns 704,308 shares of the company's stock valued at $29,722,000 after acquiring an additional 528,147 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in Ibotta by 67.2% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,043,758 shares of the company's stock valued at $44,047,000 after acquiring an additional 419,516 shares in the last quarter. XTX Topco Ltd raised its holdings in Ibotta by 237.9% in the 1st quarter. XTX Topco Ltd now owns 24,068 shares of the company's stock valued at $1,016,000 after acquiring an additional 16,945 shares in the last quarter. AMI Asset Management Corp acquired a new position in Ibotta in the 1st quarter valued at approximately $488,000. Finally, Pacer Advisors Inc. acquired a new position in Ibotta in the 1st quarter valued at approximately $3,539,000.

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.