UBS Group Issues Pessimistic Forecast for Ibotta (NYSE:IBTA) Stock Price

Key Points

• UBS Group has significantly reduced its target price for Ibotta (NYSE:IBTA) from $55.00 to $30.00, indicating a cautious outlook with a current "neutral" rating on the stock.
• Several other brokerages have also recently downgraded Ibotta's stock, with Goldman Sachs lowering their target to $30.00, mirroring the sentiment among analysts.
• Ibotta's stock dropped 27.6% during trading, with shares currently valued at approximately $24.52, and a consensus price target of $34.71 from analysts.

Ibotta (NYSE:IBTA - Free Report) had its price target reduced by UBS Group from $55.00 to $30.00 in a research report sent to investors on Thursday,Benzinga reports. They currently have a neutral rating on the stock.

Other research analysts have also recently issued research reports about the company. The Goldman Sachs Group cut Ibotta from a "buy" rating to a "neutral" rating and cut their price objective for the stock from $58.00 to $30.00 in a research report on Thursday. Evercore ISI reissued an "in-line" rating and issued a $38.00 price objective (down previously from $65.00) on shares of Ibotta in a research report on Thursday. Citigroup cut Ibotta from a "buy" rating to a "market perform" rating in a research report on Thursday. Citizens Jmp reissued a "market perform" rating on shares of Ibotta in a research report on Thursday. Finally, JMP Securities restated a "market perform" rating on shares of Ibotta in a research note on Thursday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $34.71.

Ibotta Stock Up 2.7%

IBTA stock traded up $0.63 during midday trading on Thursday, hitting $24.25. The company's stock had a trading volume of 1,708,012 shares, compared to its average volume of 632,901. The stock's 50-day moving average price is $37.18 and its 200 day moving average price is $48.63. Ibotta has a 1 year low of $22.50 and a 1 year high of $79.80. The stock has a market cap of $612.56 million, a price-to-earnings ratio of 8.42, a PEG ratio of 2.01 and a beta of -1.27.

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

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

Insiders Place Their Bets

In related news, 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 stock was sold at an average price of $35.00, for a total transaction of $55,247,570.00. Following the sale, 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CMO Richard I. Donahue sold 85,289 shares of the business's 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 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 ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 2,192,224 shares of company stock worth $78,652,577. 16.08% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Ibotta

A number of institutional investors have recently added to or reduced their stakes in IBTA. JPMorgan Chase & Co. boosted its holdings in shares of Ibotta by 481.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 654,876 shares of the company's stock worth $23,968,000 after purchasing an additional 542,313 shares in the last quarter. ARK Investment Management LLC boosted its holdings in shares of Ibotta by 299.8% in the 1st quarter. ARK Investment Management LLC now owns 704,308 shares of the company's stock worth $29,722,000 after purchasing an additional 528,147 shares in the last quarter. Southpoint Capital Advisors LP boosted its holdings in shares of Ibotta by 48.2% in the 1st quarter. Southpoint Capital Advisors LP now owns 1,536,500 shares of the company's stock worth $64,840,000 after purchasing an additional 499,556 shares in the last quarter. Nikko Asset Management Americas Inc. boosted its holdings in shares of Ibotta by 68.8% in the 1st quarter. Nikko Asset Management Americas Inc. now owns 1,053,518 shares of the company's stock worth $44,458,000 after purchasing an additional 429,516 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its holdings in shares of Ibotta by 67.2% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,043,758 shares of the company's stock worth $44,047,000 after purchasing an additional 419,516 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.