Ibotta (NYSE:IBTA) Stock Price Up 7.2% - Time to Buy?

Key Points

• Ibotta's shares rose by 7.2% on Monday, closing at $25.85 after trading as high as $25.98, despite a significant decrease in trading volume compared to the average.
• Multiple analysts recently downgraded Ibotta's stock, with Bank of America setting a new price target of $24.00, while Goldman Sachs cut its rating from "buy" to "neutral" with a target of $30.00.
• Ibotta's board approved a $100 million stock repurchase program, indicating a belief that the stock is undervalued, despite insiders selling significant shares recently.

Ibotta, Inc. (NYSE:IBTA - Get Free Report) shot up 7.2% on Monday . The company traded as high as $25.98 and last traded at $25.85. 186,990 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 448,186 shares. The stock had previously closed at $24.11.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on IBTA. Wells Fargo & Company reissued an "equal weight" rating and issued a $30.00 price objective (down from $60.00) on shares of Ibotta in a report on Thursday, August 14th. The Goldman Sachs Group cut shares of Ibotta from a "buy" rating to a "neutral" rating and decreased their price target for the stock from $58.00 to $30.00 in a research note on Thursday, August 14th. Bank of America restated an "underperform" rating and issued a $24.00 price objective (down from $57.00) on shares of Ibotta in a research note on Thursday, August 14th. Evercore ISI reiterated an "in-line" rating and set a $38.00 target price (down previously from $65.00) on shares of Ibotta in a research note on Thursday, August 14th. Finally, Needham & Company LLC dropped their price target on Ibotta from $70.00 to $33.00 and set a "buy" rating on the stock in a research report on Thursday, August 14th. One research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $34.71.

Ibotta Stock Performance

The firm has a market cap of $692.66 million, a P/E ratio of 9.52, a PEG ratio of 3.90 and a beta of -1.27. The company has a 50 day moving average of $35.44 and a 200 day moving average of $47.23.

Ibotta announced that its board has initiated a share repurchase plan on Monday, June 9th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to purchase up to 8.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its stock is undervalued.

Insider Activity at Ibotta

In other Ibotta news, CMO Richard I. Donahue sold 85,289 shares of the firm'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 owned 199,773 shares in the company, valued at approximately $8,608,218.57. This trade represents a 29.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Jermoluk Founders Fund I. Clark sold 423,878 shares of the firm's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $35.02, for a total value of $14,844,207.56. Following the completion of the transaction, the insider owned 11,363 shares in the company, valued at approximately $397,932.26. This represents a 97.39% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,191,852 shares of company stock worth $78,632,031. Corporate insiders own 16.08% of the company's stock.

Institutional Trading of Ibotta

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

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.