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

Analyst Ratings Changes

IBTA has been the subject of several analyst reports. Bank of America reissued an "underperform" rating and set a $24.00 price target (down from $57.00) on shares of Ibotta in a report on Thursday. The Goldman Sachs Group cut shares of Ibotta from a "buy" rating to a "neutral" rating and cut their target price for the company from $58.00 to $30.00 in a research note on Thursday. JMP Securities restated a "market perform" rating on shares of Ibotta in a research report on Thursday. Citigroup lowered Ibotta from a "buy" rating to a "market perform" rating in a research note on Thursday. Finally, Citizens Jmp restated a "market perform" rating on shares of Ibotta in a research note on Thursday. One analyst has rated the stock with a sell rating, seven have given a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $34.71.

Ibotta Stock Up 9.2%

The firm has a market cap of $665.35 million, a P/E ratio of 9.15, a P/E/G ratio of 3.48 and a beta of -1.27. The business has a fifty day simple moving average of $37.18 and a 200-day simple moving average of $48.51.

Ibotta announced that its board has approved a stock repurchase program on Monday, June 9th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to purchase up to 8.5% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of Ibotta stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $35.00, for a total transaction of $55,247,570.00. Following the transaction, the insider owned 3,841,308 shares in the company, valued at $134,445,780. This trade represents a 29.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CMO Richard I. Donahue sold 85,289 shares of the firm's stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $43.09, for a total transaction of $3,675,103.01. Following the sale, the chief marketing officer owned 199,773 shares in the company, valued at approximately $8,608,218.57. The trade was a 29.92% decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,191,852 shares of company stock valued at $78,632,031 over the last quarter. Company insiders own 16.08% of the company's stock.

Hedge Funds Weigh In On Ibotta

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Ibotta by 5.8% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,394 shares of the company's stock worth $396,000 after purchasing an additional 515 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank purchased a new stake in Ibotta during the first quarter worth approximately $25,000. CWM LLC boosted its holdings in 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 in the last quarter. Deutsche Bank AG increased its stake in Ibotta by 6.9% in the first quarter. Deutsche Bank AG now owns 11,030 shares of the company's stock valued at $465,000 after purchasing an additional 713 shares during the last quarter. Finally, Private Wealth Asset Management LLC purchased a new stake in shares of Ibotta during the 2nd quarter worth approximately $37,000.

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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