Ibotta (NYSE:IBTA) Shares Down 6.4% - Time to Sell?

Key Points

• Ibotta shares fell 6.4% in mid-day trading, hitting as low as $30.05 after closing at $32.16 the day before, on volume well below average.
• Analyst sentiment remains cautious: several firms recently raised price targets, but the consensus rating is still “Reduce” with an average target price of $33.00.
• The company beat earnings expectations in its latest quarter, reporting $0.24 EPS versus an expected loss, but revenue still declined 2.5% year over year and insiders have been selling shares.

Ibotta, Inc. (NYSE:IBTA - Get Free Report)'s stock price dropped 6.4% during mid-day trading on Wednesday . The stock traded as low as $30.05 and last traded at $30.10. Approximately 49,543 shares changed hands during mid-day trading, a decline of 82% from the average daily volume of 269,792 shares. The stock had previously closed at $32.16.

Analyst Ratings Changes

Several research firms recently weighed in on IBTA. Wall Street Zen upgraded Ibotta from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Wells Fargo & Company raised their price objective on Ibotta from $34.00 to $38.00 and gave the company an "equal weight" rating in a research report on Thursday, May 7th. Needham & Company LLC upped their target price on shares of Ibotta from $33.00 to $45.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Zacks Research upgraded shares of Ibotta from a "strong sell" rating to a "hold" rating in a research note on Monday, June 8th. Finally, Evercore set a $40.00 price target on shares of Ibotta in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $33.00.

Ibotta Stock Down 8.5%

The firm has a market capitalization of $594.43 million, a P/E ratio of -86.56 and a beta of -0.59. The company has a fifty day simple moving average of $33.60 and a 200 day simple moving average of $26.99.

Ibotta (NYSE:IBTA - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.21) by $0.45. Ibotta had a negative return on equity of 2.39% and a negative net margin of 2.15%.The firm had revenue of $82.48 million during the quarter. During the same period in the prior year, the firm earned $0.02 EPS. Ibotta's revenue for the quarter was down 2.5% compared to the same quarter last year. As a group, equities analysts expect that Ibotta, Inc. will post 0.24 earnings per share for the current fiscal year.

Ibotta declared that its Board of Directors has initiated a stock repurchase program on Wednesday, March 11th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to purchase up to 21.2% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, CTO Luke Roy Swanson sold 5,940 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $32.98, for a total transaction of $195,901.20. Following the sale, the chief technology officer owned 495,844 shares in the company, valued at $16,352,935.12. This represents a 1.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Thomas D. Lehrman sold 19,788 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $32.11, for a total transaction of $635,392.68. Following the completion of the transaction, the director owned 32,981 shares of the company's stock, valued at approximately $1,059,019.91. The trade was a 37.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 107,701 shares of company stock worth $3,419,255. Corporate insiders own 20.92% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Essential Partners LLC increased its holdings in Ibotta by 40,800.0% in the 1st quarter. Essential Partners LLC now owns 818 shares of the company's stock worth $25,000 after buying an additional 816 shares in the last quarter. New York State Teachers Retirement System bought a new stake in shares of Ibotta in the first quarter worth approximately $39,000. Meeder Asset Management Inc. bought a new position in Ibotta during the first quarter valued at approximately $39,000. Caitong International Asset Management Co. Ltd boosted its holdings in Ibotta by 187.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,817 shares of the company's stock worth $41,000 after purchasing an additional 1,185 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its stake in Ibotta by 47,920.0% during the 4th quarter. Farther Finance Advisors LLC now owns 2,401 shares of the company's stock valued at $55,000 after buying an additional 2,396 shares during the last quarter.

Ibotta Company Profile

Ibotta NYSE: IBTA is a Denver‐based mobile commerce platform that connects consumers, retailers and brands through a unified cash-back rewards experience. Users access the Ibotta mobile app or browser extension to unlock rebates on everyday purchases, redeemable on groceries, retail goods, travel bookings and digital services. The platform integrates with major supermarket chains, big‐box retailers and online merchants, enabling shoppers to earn automatic cash-back both in physical stores and across e-commerce channels.

Founded in 2012 by co‐founder and CEO Bryan Leach, Ibotta has evolved from a simple rebate app into a comprehensive performance marketing partner for consumer goods companies.

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