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 report issued on Thursday, Marketbeat Ratings reports. They currently have a $24.00 price objective on the stock, down from their previous price objective of $57.00. Bank of America's target price would suggest a potential downside of 11.70% from the company's previous close.

A number of other equities research analysts also recently commented on IBTA. Citigroup downgraded shares of Ibotta from a "buy" rating to a "market perform" rating in a research report on Thursday, August 14th. JMP Securities reiterated a "market outperform" rating and set a $58.00 price target on shares of Ibotta in a research note on Thursday, May 15th. Wells Fargo & Company lifted their price target on shares of Ibotta from $52.00 to $60.00 and gave the stock an "overweight" rating in a research note on Thursday, May 15th. UBS Group lifted their price target on shares of Ibotta from $42.00 to $55.00 and gave the stock a "neutral" rating in a research note on Thursday, May 15th. Finally, Needham & Company LLC lifted their price target on shares of Ibotta from $60.00 to $70.00 and gave the stock a "buy" rating in a research note on Thursday, May 15th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $34.71.

Ibotta Stock Performance

Shares of IBTA traded up $1.03 on Thursday, hitting $27.18. 567,236 shares of the stock traded hands, compared to its average volume of 455,812. The company has a market capitalization of $686.57 million, a PE ratio of 9.44, a P/E/G ratio of 3.48 and a beta of -1.27. The business has a 50 day simple moving average of $36.78 and a 200 day simple moving average of $48.26. Ibotta has a one year low of $22.50 and a one year high of $79.80.

Ibotta announced that its Board of Directors has initiated a share repurchase plan on Monday, June 9th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 8.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the business's stock in a transaction dated 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 in the company, valued at $134,445,780. The trade was a 29.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CMO Richard I. Donahue sold 85,289 shares of the business's stock in a transaction dated 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 in the company, valued at approximately $8,608,218.57. This trade represents a 29.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,191,852 shares of company stock worth $78,632,031. 16.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ibotta

Several hedge funds have recently added to or reduced their stakes in IBTA. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in Ibotta during the 1st quarter valued at about $25,000. CWM LLC grew its holdings in Ibotta by 225.2% during the 2nd quarter. CWM LLC now owns 943 shares of the company's stock valued at $35,000 after purchasing an additional 653 shares during the last quarter. Private Wealth Asset Management LLC bought a new position in Ibotta during the 2nd quarter valued at about $37,000. Quantbot Technologies LP purchased a new stake in Ibotta in the 2nd quarter valued at about $66,000. Finally, Tower Research Capital LLC TRC boosted its position in Ibotta by 144.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,851 shares of the company's stock valued at $141,000 after buying an additional 2,274 shares during the period.

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.