Ibotta (NYSE:IBTA) Trading Down 5.5% - Here's What Happened

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.

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

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Wells Fargo & Company reiterated an "equal weight" rating and set a $30.00 price target (down previously from $60.00) on shares of Ibotta in a report on Thursday, August 14th. Bank of America reiterated an "underperform" rating and set a $24.00 price target (down previously from $57.00) on shares of Ibotta in a report on Thursday, August 14th. The Goldman Sachs Group downgraded shares of Ibotta from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $58.00 to $30.00 in a research note on Thursday, August 14th. Wall Street Zen upgraded shares of Ibotta from a "sell" rating to a "hold" rating in a research note on Saturday. Finally, Citizens Jmp downgraded shares of Ibotta from an "outperform" rating to a "market perform" rating in a research note on Thursday, August 14th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $34.71.

Ibotta Price Performance

The firm's 50 day moving average price is $32.08 and its 200-day moving average price is $41.53. The firm has a market cap of $671.94 million, a price-to-earnings ratio of 9.24, a P/E/G ratio of 21.82 and a beta of -1.31.

Ibotta declared that its Board of Directors has approved a stock repurchase program on Monday, June 9th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to purchase up to 8.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the firm's 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 completion of the transaction, the insider directly owned 3,841,308 shares of the company's stock, valued at $134,445,780. This trade represents a 29.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 2,027,380 shares of company stock valued at $71,064,528 over the last three months. 16.08% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Nikko Asset Management Americas Inc. lifted its position in Ibotta by 5.1% in the second quarter. Nikko Asset Management Americas Inc. now owns 1,107,338 shares of the company's stock worth $40,529,000 after purchasing an additional 53,820 shares during the period. Tower Research Capital LLC TRC lifted its position in Ibotta by 144.2% in the second quarter. Tower Research Capital LLC TRC now owns 3,851 shares of the company's stock worth $141,000 after purchasing an additional 2,274 shares during the period. Man Group plc bought a new position in Ibotta in the second quarter worth $529,000. HRT Financial LP bought a new position in Ibotta in the second quarter worth $1,739,000. Finally, Engineers Gate Manager LP bought a new position in Ibotta in the second quarter worth $1,106,000.

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.