Insider Selling: Ibotta (NYSE:IBTA) Major Shareholder Sells $15,075,000.00 in Stock

Key Points

• Ibotta major shareholder Jermoluk Founders Fund Clark sold 500,000 shares on July 6 at an average price of $30.15, totaling about $15.1 million. The sale reduced its ownership by 13.02% to 3.34 million shares.
• IBTA stock fell 6.0% and was trading at $31.45 amid lighter-than-average volume. The shares remain below the 50-day moving average of $33.22 but above the 200-day moving average of $28.04.
• Analysts are mixed on Ibotta, with a consensus rating of “Reduce” and an average price target of $33.83. The company also has a $100 million share buyback program in place, which management may view as a sign the stock is undervalued.

Ibotta, Inc. (NYSE:IBTA - Get Free Report) major shareholder Jermoluk Founders Fund Clark sold 500,000 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $30.15, for a total transaction of $15,075,000.00. Following the completion of the transaction, the insider owned 3,341,308 shares in the company, valued at $100,740,436.20. This represents a 13.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Large shareholders that own 10% or more of a company's stock are required to disclose their sales and purchases with the SEC.

Ibotta Stock Down 6.0%

IBTA stock traded down $2.02 during midday trading on Wednesday, reaching $31.45. The company's stock had a trading volume of 165,100 shares, compared to its average volume of 260,357. The business's 50-day simple moving average is $33.22 and its 200-day simple moving average is $28.04. Ibotta, Inc. has a 52 week low of $19.10 and a 52 week high of $41.14. The stock has a market cap of $635.29 million, a PE ratio of -92.50 and a beta of -0.59.

Ibotta (NYSE:IBTA - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $0.24 EPS for the quarter, beating the consensus estimate of ($0.21) by $0.45. Ibotta had a negative net margin of 2.15% and a negative return on equity of 2.39%. The company had revenue of $82.48 million during the quarter. During the same quarter in the previous year, the firm posted $0.02 EPS. The business's revenue was down 2.5% on a year-over-year basis. As a group, equities analysts forecast that Ibotta, Inc. will post 0.24 earnings per share for the current fiscal year.

Ibotta declared that its Board of Directors has initiated a share buyback program on Wednesday, March 11th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 21.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on IBTA. Zacks Research upgraded shares of Ibotta from a "strong sell" rating to a "hold" rating in a report on Monday, June 8th. Evercore set a $40.00 target price on shares of Ibotta in a report on Thursday, May 7th. The Goldman Sachs Group reduced their price target on shares of Ibotta from $32.00 to $28.00 and set a "sell" rating on the stock in a research report on Wednesday. Weiss Ratings reissued a "sell (d)" rating on shares of Ibotta in a report on Wednesday, June 24th. Finally, Needham & Company LLC upped their price objective on shares of Ibotta from $33.00 to $45.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. One investment analyst has rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $33.83.

Hedge Funds Weigh In On Ibotta

Institutional investors and hedge funds have recently modified their holdings of the business. Hsbc Holdings PLC lifted its stake in Ibotta by 29.4% in the fourth quarter. Hsbc Holdings PLC now owns 993,977 shares of the company's stock valued at $22,210,000 after buying an additional 226,021 shares in the last quarter. FourThought Financial Partners LLC bought a new stake in shares of Ibotta during the fourth quarter worth $526,000. Farther Finance Advisors LLC increased its position in shares of Ibotta by 47,920.0% during the fourth quarter. Farther Finance Advisors LLC now owns 2,401 shares of the company's stock worth $55,000 after acquiring an additional 2,396 shares in the last quarter. Numerai GP LLC acquired a new stake in shares of Ibotta during the third quarter worth $415,000. Finally, Wells Fargo & Company MN lifted its position in Ibotta by 59.0% in the 4th quarter. Wells Fargo & Company MN now owns 18,038 shares of the company's stock valued at $410,000 after acquiring an additional 6,695 shares in the last quarter.

Ibotta Company Profile

Ibotta NYSE: IBTA is a Denver‐based mobile commerce platform that connects consumers, retailers and brands through a unified cash-back rewards experience. Users access the Ibotta mobile app or browser extension to unlock rebates on everyday purchases, redeemable on groceries, retail goods, travel bookings and digital services. The platform integrates with major supermarket chains, big‐box retailers and online merchants, enabling shoppers to earn automatic cash-back both in physical stores and across e-commerce channels.

Founded in 2012 by co‐founder and CEO Bryan Leach, Ibotta has evolved from a simple rebate app into a comprehensive performance marketing partner for consumer goods companies.

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