Ibotta (NYSE:IBTA) Shares Gap Down After Analyst Downgrade

Key Points

• Ibotta's shares gapped down significantly, opening at $23.50 after an analyst downgrade from Citizens JMP, resulting in a prior closing price of $33.88.
• Numerous analysts have downgraded their ratings and price targets for Ibotta, with Bank of America lowering its price target from $57.00 to $24.00 and Goldman Sachs cutting its target from $58.00 to $30.00.
• The company has authorized a stock buyback program of up to $100 million, indicating that the board may believe the stock is currently undervalued.

Shares of Ibotta, Inc. (NYSE:IBTA - Get Free Report) gapped down before the market opened on Thursday after UBS Group lowered their price target on the stock from $55.00 to $30.00. The stock had previously closed at $33.88, but opened at $23.50. UBS Group currently has a neutral rating on the stock. Ibotta shares last traded at $23.58, with a volume of 735,459 shares trading hands.

A number of other analysts have also commented on the company. Evercore ISI reissued an "in-line" rating and issued a $38.00 target price (down previously from $65.00) on shares of Ibotta in a report on Thursday, August 14th. Needham & Company LLC reduced their price objective on Ibotta from $70.00 to $33.00 and set a "buy" rating for the company in a report on Thursday, August 14th. Citizens Jmp cut shares of Ibotta from an "outperform" rating to a "market perform" rating in a research note on Thursday, August 14th. Citigroup lowered shares of Ibotta from a "buy" rating to a "market perform" rating in a research note on Thursday, August 14th. Finally, Bank of America restated an "underperform" rating and set a $24.00 price objective (down previously from $57.00) on shares of Ibotta in a research report on Thursday, August 14th. One research 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. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $34.71.

Insider Activity at Ibotta

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the company'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 sale, the insider directly owned 3,841,308 shares in the company, valued at $134,445,780. This represents a 29.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CMO Richard I. Donahue sold 85,289 shares of Ibotta stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $43.09, for a total value of $3,675,103.01. Following the transaction, the chief marketing officer owned 199,773 shares in the company, valued at $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. Insiders sold 2,191,852 shares of company stock worth $78,632,031 over the last quarter. Insiders own 16.08% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in Ibotta in the 1st quarter worth approximately $25,000. CWM LLC boosted its position in shares of Ibotta by 225.2% in the second quarter. CWM LLC now owns 943 shares of the company's stock worth $35,000 after purchasing an additional 653 shares during the period. Private Wealth Asset Management LLC purchased a new stake in shares of Ibotta in the second quarter worth $37,000. Quantbot Technologies LP purchased a new stake in shares of Ibotta in the second quarter worth $66,000. Finally, Tower Research Capital LLC TRC raised its position 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 purchasing an additional 2,274 shares during the period.

Ibotta Trading Up 4.1%

The company has a market cap of $687.32 million, a PE ratio of 9.45, a PEG ratio of 3.48 and a beta of -1.27. The business's 50 day moving average is $36.78 and its two-hundred day moving average is $48.26.

Ibotta declared that its Board of Directors has approved 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 purchase up to 8.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

About Ibotta

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.