Ibotta's (IBTA) "Market Perform" Rating Reiterated at JMP Securities

Key Points

• JMP Securities has reiterated Ibotta's stock rating as "market perform," while other firms like Goldman Sachs have downgraded their ratings significantly.
• Ibotta recently announced a $100 million share buyback plan indicating the company's belief that its stock is undervalued.
• The company's latest earnings report showed a revenue increase of 2.8% year-over-year, with a reported EPS of $0.02 exceeding estimates.

Ibotta (NYSE:IBTA - Get Free Report)'s stock had its "market perform" rating restated by equities researchers at JMP Securities in a note issued to investors on Thursday,Benzinga reports.

Other research analysts have also issued research reports about the company. UBS Group increased their price target on Ibotta from $42.00 to $55.00 and gave the stock a "neutral" rating in a report on Thursday, May 15th. Needham & Company LLC cut their price target on Ibotta from $70.00 to $33.00 and set a "buy" rating on the stock in a report on Thursday. Citizens Jmp reiterated a "market perform" rating on shares of Ibotta in a report on Thursday. Wells Fargo & Company reiterated an "equal weight" rating and issued a $30.00 price target (down previously from $60.00) on shares of Ibotta in a report on Thursday. Finally, Citigroup lowered Ibotta from a "buy" rating to a "market perform" rating in a report on Thursday. One analyst has rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, Ibotta currently has an average rating of "Hold" and an average price target of $34.71.

Ibotta Price Performance

Shares of Ibotta stock traded up $0.63 on Thursday, hitting $24.25. 1,708,012 shares of the company's stock 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 company has a fifty day moving average of $37.18 and a two-hundred day moving average of $48.63. The company has a market capitalization 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.

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

Ibotta declared that its board has authorized a share buyback plan on Monday, June 9th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire 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.

Insider Buying and Selling

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the firm's stock in a transaction that occurred 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 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, 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 shares were sold at an average price of $43.09, for a total value of $3,675,103.01. Following the completion of the transaction, the chief marketing officer owned 199,773 shares in the company, valued at $8,608,218.57. This represents a 29.92% decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,192,224 shares of company stock worth $78,652,577 in the last 90 days. Corporate insiders own 16.08% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Nikko Asset Management Americas Inc. lifted its holdings in shares of Ibotta by 5.1% in the second quarter. Nikko Asset Management Americas Inc. now owns 1,107,338 shares of the company's stock valued at $40,529,000 after purchasing an additional 53,820 shares in the last quarter. Tower Research Capital LLC TRC lifted its holdings 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 acquiring an additional 2,274 shares during the period. Man Group plc bought a new stake in Ibotta during the second quarter worth $529,000. HRT Financial LP bought a new stake in Ibotta during the second quarter worth $1,739,000. Finally, Engineers Gate Manager LP bought a new stake in Ibotta during the second quarter worth $1,106,000.

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.