Ibotta (NYSE:IBTA) Shares Gap Down After Analyst Downgrade

Ibotta, Inc. (NYSE:IBTA)’s stock price gapped down before the market opened on Thursday after UBS Group lowered their price target on the stock from $55.00 to $30.00. The stock had previously closed at $33.88, but opened at $23.50. UBS Group currently has a neutral rating on the stock. Ibotta shares last traded at $23.58, with a volume of 735,459 shares changing hands.

Other equities research analysts also recently issued research reports about the company. Citizens Jmp reiterated a “market perform” rating on shares of Ibotta in a research report on Thursday. The Goldman Sachs Group downgraded Ibotta from a “buy” rating to a “neutral” rating and cut their price objective for the company from $58.00 to $30.00 in a research report on Thursday. Wells Fargo & Company reissued an “equal weight” rating and set a $30.00 target price (down from $60.00) on shares of Ibotta in a research note on Thursday. Citigroup downgraded shares of Ibotta from a “buy” rating to a “market perform” rating in a research note on Thursday. Finally, Needham & Company LLC cut their target price on shares of Ibotta from $70.00 to $33.00 and set a “buy” rating on the stock 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. According to data from MarketBeat, Ibotta has an average rating of “Hold” and an average target price of $34.71.

Insider Buying and Selling at Ibotta

In other news, major shareholder Jermoluk Founders Fund I. Clark sold 1,578,502 shares of the company’s stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $35.00, for a total value of $55,247,570.00. Following the transaction, the insider directly owned 3,841,308 shares of the company’s stock, valued at approximately $134,445,780. This represents a 29.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CMO Richard I. Donahue sold 85,289 shares of the company’s stock in a transaction 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 completion of the transaction, the chief marketing officer directly owned 199,773 shares in the company, valued at $8,608,218.57. This trade represents a 29.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,192,224 shares of company stock worth $78,652,577. Company insiders own 16.08% of the company’s stock.

Hedge Funds Weigh In On Ibotta

A number of hedge funds have recently modified their holdings of IBTA. GAMMA Investing LLC increased its stake in shares of Ibotta by 2,859.7% in the first quarter. GAMMA Investing LLC now owns 1,983 shares of the company’s stock worth $840,000 after acquiring an additional 1,916 shares during the last quarter. Rhumbline Advisers increased its position in Ibotta by 6.6% during the first quarter. Rhumbline Advisers now owns 20,221 shares of the company’s stock worth $853,000 after buying an additional 1,252 shares during the last quarter. AMI Asset Management Corp acquired a new position in Ibotta during the first quarter worth $488,000. Sumitomo Mitsui Trust Group Inc. increased its position in Ibotta by 67.2% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,043,758 shares of the company’s stock worth $44,047,000 after buying an additional 419,516 shares during the last quarter. Finally, New York State Common Retirement Fund increased its position in Ibotta by 58.1% during the first quarter. New York State Common Retirement Fund now owns 4,900 shares of the company’s stock worth $207,000 after buying an additional 1,800 shares during the last quarter.

Ibotta Stock Down 30.3%

The stock has a market capitalization of $598.08 million, a price-to-earnings ratio of 8.20, a P/E/G ratio of 2.82 and a beta of -1.27. The company’s 50-day simple moving average is $37.68 and its 200 day simple moving average is $49.00.

Ibotta (NYSE:IBTA) last posted its earnings results on Wednesday, May 14th. The company reported $0.02 EPS for the quarter, topping the consensus estimate of $0.01 by $0.01. The firm had revenue of $84.57 million for the quarter, compared to the consensus estimate of $81.70 million. Ibotta had a net margin of 26.24% and a return on equity of 23.40%. The business’s quarterly revenue was up 2.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.33 earnings per share.

Ibotta declared that its board has approved a stock buyback program on Monday, June 9th that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 8.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

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.