Ibotta (NYSE:IBTA) Stock Price Down 5.5% - Time to Sell?

Key Points

• Ibotta shares dropped 5.5% to $27.10, with trading volume falling to 191,493 shares, significantly below the average of 462,024 shares.
• Recent analyst ratings have seen target prices cut dramatically, with UBS lowering Ibotta's target from $55 to $30 and others issuing a mix of "neutral" and "underperform" ratings.
• The company's board approved a $100 million stock repurchase program, indicating confidence in the stock's long-term value amid recent price declines.

Ibotta, Inc. (NYSE:IBTA - Get Free Report)'s stock price dropped 5.5% on Tuesday . The stock traded as low as $26.86 and last traded at $27.10. Approximately 191,493 shares were traded during trading, a decline of 59% from the average daily volume of 462,024 shares. The stock had previously closed at $28.69.

Wall Street Analysts Forecast Growth

IBTA has been the subject of several research reports. JMP Securities reissued a "market perform" rating on shares of Ibotta in a report on Thursday, August 14th. Bank of America reissued an "underperform" rating and set a $24.00 price target (down from $57.00) on shares of Ibotta in a report on Thursday, August 14th. UBS Group dropped their price target on Ibotta from $55.00 to $30.00 and set a "neutral" rating for the company in a report on Thursday, August 14th. Citigroup cut Ibotta from a "buy" rating to a "market perform" rating in a report on Thursday, August 14th. Finally, Wells Fargo & Company restated an "equal weight" rating and set a $30.00 price objective (down previously from $60.00) on shares of Ibotta in a research note on Thursday, August 14th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $34.71.

Ibotta Trading Down 2.5%

The company has a 50 day moving average price of $32.08 and a 200-day moving average price of $41.53. The company has a market cap of $671.94 million, a P/E ratio of 9.24, a price-to-earnings-growth ratio of 21.82 and a beta of -1.31.

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

Insider Activity

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of Ibotta stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $35.00, for a total value of $55,247,570.00. Following the transaction, 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In the last 90 days, insiders sold 2,027,380 shares of company stock valued at $71,064,528. Company insiders own 16.08% of the company's stock.

Hedge Funds Weigh In On Ibotta

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

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.