Ibotta (NYSE:IBTA) Hits New 52-Week Low - What's Next?

Key Points

• Ibotta's shares reached a new 52-week low of $31.14, closing at $31.24, with trading volume of 461,826 shares.
• Equities analysts have forecasted growth for Ibotta, with Goldman Sachs raising its price target from $50.00 to $65.00 and five analysts recommending a "buy" rating.
• The company announced a stock buyback program allowing for the repurchase of up to $100 million in shares, indicating management’s belief that the stock is currently undervalued.

Ibotta, Inc. (NYSE:IBTA - Get Free Report) shares reached a new 52-week low on Monday . The stock traded as low as $31.14 and last traded at $31.24, with a volume of 461826 shares trading hands. The stock had previously closed at $32.80.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Evercore ISI reaffirmed an "outperform" rating on shares of Ibotta in a research note on Thursday, May 15th. The Goldman Sachs Group increased their price objective on shares of Ibotta from $50.00 to $65.00 and gave the company a "buy" rating in a research report on Friday, May 16th. UBS Group increased their price objective on shares of Ibotta from $42.00 to $55.00 and gave the company a "neutral" rating in a research report on Thursday, May 15th. Needham & Company LLC increased their price objective on shares of Ibotta from $60.00 to $70.00 and gave the company a "buy" rating in a research report on Thursday, May 15th. Finally, Wells Fargo & Company increased their price objective on shares of Ibotta from $52.00 to $60.00 and gave the company an "overweight" rating in a research report on Thursday, May 15th. One research analyst has rated the stock with a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $61.60.

Ibotta Stock Performance

The company's fifty day moving average price is $39.15 and its 200-day moving average price is $49.86. The stock has a market cap of $797.27 million, a P/E ratio of 21.28, a price-to-earnings-growth ratio of 2.73 and a beta of -1.27.

Ibotta (NYSE:IBTA - Get Free Report) last released its earnings results on Wednesday, May 14th. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.01 by $0.01. The firm had revenue of $84.57 million during the quarter, compared to analyst estimates of $81.70 million. Ibotta had a net margin of 16.24% and a return on equity of 15.04%. The business's revenue was up 2.8% on a year-over-year basis. During the same quarter last year, the business earned $0.33 EPS.

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

Insider Activity

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the firm'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 completion of the sale, the insider owned 3,841,308 shares in the company, valued at approximately $134,445,780. This trade represents a 29.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CMO Richard I. Donahue sold 85,289 shares of the firm'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 of the company's stock, valued at $8,608,218.57. This trade represents a 29.92% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 2,192,224 shares of company stock valued at $78,652,577 in the last 90 days. Company insiders own 16.08% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Intech Investment Management LLC increased its stake in Ibotta by 64.5% in the 2nd quarter. Intech Investment Management LLC now owns 9,632 shares of the company's stock worth $353,000 after buying an additional 3,778 shares during the period. Fox Run Management L.L.C. purchased a new position in Ibotta in the 2nd quarter worth about $395,000. Sumitomo Mitsui Trust Group Inc. increased its stake in Ibotta by 6.6% in the 2nd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,113,165 shares of the company's stock worth $40,742,000 after buying an additional 69,407 shares during the period. Private Wealth Asset Management LLC purchased a new position in Ibotta in the 2nd quarter worth about $37,000. Finally, CWM LLC increased its stake in Ibotta by 225.2% in the 2nd quarter. CWM LLC now owns 943 shares of the company's stock worth $35,000 after buying an additional 653 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.

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