Ibotta (NYSE:IBTA) Shares Gap Down on 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.

Ibotta, Inc. (NYSE:IBTA - Get Free Report) shares gapped down prior to trading on Thursday after Citizens Jmp downgraded the stock from an outperform rating to a market perform rating. The stock had previously closed at $33.88, but opened at $23.50. Ibotta shares last traded at $23.58, with a volume of 735,459 shares traded.

IBTA has been the topic of a number of other reports. UBS Group upped their price objective on Ibotta from $42.00 to $55.00 and gave the company a "neutral" rating in a research report on Thursday, May 15th. JMP Securities reaffirmed a "market outperform" rating and issued a $58.00 price target on shares of Ibotta in a research note on Thursday, May 15th. Bank of America reaffirmed an "underperform" rating and issued a $24.00 price target (down previously from $57.00) on shares of Ibotta in a research note on Thursday. Wells Fargo & Company reissued an "equal weight" rating and set a $30.00 target price (down previously from $60.00) on shares of Ibotta in a research report on Thursday. Finally, The Goldman Sachs Group cut shares of Ibotta from a "buy" rating to a "neutral" rating and decreased their target price for the company from $58.00 to $30.00 in a research report on Thursday. One research analyst has rated the stock with a sell rating, six have given a hold rating and one has assigned a buy rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $38.29.

Insider Buying and Selling at Ibotta

In other news, CMO Richard I. Donahue sold 85,289 shares of the company's stock in a transaction dated 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 completion of the sale, the chief marketing officer directly owned 199,773 shares of the company's stock, valued at approximately $8,608,218.57. This represents a 29.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of Ibotta stock in a transaction that occurred on 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 directly owned 3,841,308 shares in the company, valued at $134,445,780. This represents a 29.12% decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,192,224 shares of company stock valued at $78,652,577 in the last 90 days. 16.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Ibotta

Institutional investors have recently added to or reduced their stakes in the business. Zurcher Kantonalbank Zurich Cantonalbank acquired a new stake in Ibotta in the first quarter valued at approximately $25,000. CWM LLC boosted its holdings in shares of Ibotta by 225.2% in the 2nd quarter. CWM LLC now owns 943 shares of the company's stock valued at $35,000 after buying an additional 653 shares during the period. Private Wealth Asset Management LLC bought a new stake in shares of Ibotta in the 2nd quarter worth approximately $37,000. Quantbot Technologies LP bought a new position in shares of Ibotta during the second quarter worth about $66,000. Finally, Jones Financial Companies Lllp acquired a new position in shares of Ibotta during the first quarter worth approximately $161,000.

Ibotta Stock Down 29.9%

The company has a market cap of $600.86 million, a P/E ratio of 16.04, a PEG ratio of 2.74 and a beta of -1.27. The company has a 50 day moving average price of $38.18 and a 200-day moving average price of $49.25.

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

Ibotta declared that its board has authorized a stock repurchase program on Monday, June 9th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 8.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board believes its stock is 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.

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