Evercore ISI Reaffirms "In-Line" Rating for Ibotta (NYSE:IBTA)

Key Points

• Evercore ISI has reaffirmed Ibotta's stock rating as "in-line" with a target price reduced to $38.00, suggesting a potential upside of 9.92% from its last close.
• Ibotta's recent earnings showed a revenue of $84.57 million, exceeding analyst expectations and marking a 2.8% increase year-over-year.
• The company announced a stock buyback plan of $100 million, indicating management's belief that the stock is currently undervalued.

Evercore ISI reiterated their in-line rating on shares of Ibotta (NYSE:IBTA - Free Report) in a research note issued to investors on Thursday, MarketBeat reports. They currently have a $38.00 price objective on the stock, down from their prior price objective of $65.00.

A number of other equities research analysts have also weighed in on the stock. JMP Securities restated a "market outperform" rating and issued a $58.00 price objective on shares of Ibotta in a report on Thursday, May 15th. The Goldman Sachs Group lowered shares of Ibotta from a "buy" rating to a "neutral" rating and lowered their price objective for the stock from $58.00 to $30.00 in a report on Thursday. Citigroup lowered shares of Ibotta from a "buy" rating to a "market perform" rating in a report on Thursday. Wells Fargo & Company boosted their price objective on shares of Ibotta from $52.00 to $60.00 and gave the stock an "overweight" rating in a report on Thursday, May 15th. Finally, Needham & Company LLC boosted their price objective on shares of Ibotta from $60.00 to $70.00 and gave the stock a "buy" rating in a report on Thursday, May 15th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $34.71.

Ibotta Stock Performance

Ibotta stock traded up $0.63 during mid-day trading on Thursday, hitting $24.25. 1,708,012 shares of the company traded hands, compared to its average volume of 632,901. Ibotta has a one year low of $22.50 and a one year high of $79.80. The stock has a market cap of $612.56 million, a price-to-earnings ratio of 8.42, a price-to-earnings-growth ratio of 2.01 and a beta of -1.27. The stock has a fifty day moving average price of $37.18 and a 200-day moving average price of $48.63.

Ibotta (NYSE:IBTA - Get Free Report) last announced its earnings results on Wednesday, May 14th. The company reported $0.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.01. Ibotta had a net margin of 26.24% and a return on equity of 24.26%. The business had revenue of $84.57 million during the quarter, compared to analyst estimates of $81.70 million. During the same period in the previous year, the business posted $0.33 earnings per share. Ibotta's revenue for the quarter was up 2.8% on a year-over-year basis.

Ibotta declared that its Board of Directors has approved a stock repurchase program on Monday, June 9th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 8.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Ibotta

In related news, 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 directly owned 199,773 shares of the company's stock, valued at $8,608,218.57. The trade was a 29.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the business's 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 directly owned 3,841,308 shares in the company, valued at approximately $134,445,780. The trade was a 29.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,192,224 shares of company stock worth $78,652,577. 16.08% of the stock is owned by insiders.

Institutional Trading of Ibotta

Hedge funds have recently modified their holdings of the business. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in Ibotta in the 1st quarter worth about $25,000. CWM LLC boosted its stake in Ibotta by 225.2% in the 2nd quarter. CWM LLC now owns 943 shares of the company's stock worth $35,000 after purchasing an additional 653 shares in the last quarter. Private Wealth Asset Management LLC bought a new position in Ibotta during the 2nd quarter valued at about $37,000. Quantbot Technologies LP bought a new position in Ibotta during the 2nd quarter valued at about $66,000. Finally, Tower Research Capital LLC TRC lifted its stake in 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 acquiring an additional 2,274 shares during the period.

Ibotta Company Profile

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.