Ibotta (NYSE:IBTA) Trading Down 6.8% After Analyst Downgrade

Ibotta, Inc. (NYSE:IBTA) dropped 6.8% during mid-day trading on Monday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The company traded as low as $32.54 and last traded at $33.08. Approximately 35,854 shares were traded during trading, a decline of 87% from the average daily volume of 284,628 shares. The stock had previously closed at $35.50.

Other research analysts have also recently issued reports about the company. Weiss Ratings reissued a “sell (d)” rating on shares of Ibotta in a report on Friday, March 27th. Wall Street Zen raised Ibotta from a “sell” rating to a “hold” rating in a report on Saturday. Needham & Company LLC raised their price target on Ibotta from $33.00 to $45.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Evercore set a $40.00 price target on Ibotta in a report on Thursday, May 7th. Finally, Wells Fargo & Company raised their price target on Ibotta from $34.00 to $38.00 and gave the company an “equal weight” rating in a report on Thursday, May 7th. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $36.57.

Insiders Place Their Bets

In related news, insider Marisa Daspit sold 2,956 shares of the firm’s stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $24.06, for a total transaction of $71,121.36. Following the completion of the sale, the insider directly owned 127,597 shares of the company’s stock, valued at $3,069,983.82. This trade represents a 2.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Thomas D. Lehrman sold 10,992 shares of the firm’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $32.91, for a total value of $361,746.72. Following the sale, the director directly owned 60,289 shares of the company’s stock, valued at $1,984,110.99. This represents a 15.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 28,810 shares of company stock valued at $931,480 over the last ninety days. Insiders own 20.92% of the company’s stock.

Institutional Investors Weigh In On Ibotta

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Rhumbline Advisers increased its stake in shares of Ibotta by 2.0% in the 3rd quarter. Rhumbline Advisers now owns 19,256 shares of the company’s stock valued at $536,000 after buying an additional 380 shares during the period. CWM LLC increased its stake in shares of Ibotta by 50.8% in the 3rd quarter. CWM LLC now owns 1,422 shares of the company’s stock valued at $40,000 after buying an additional 479 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Ibotta by 5.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,394 shares of the company’s stock valued at $396,000 after buying an additional 515 shares during the period. Quantbot Technologies LP increased its stake in shares of Ibotta by 34.6% in the 3rd quarter. Quantbot Technologies LP now owns 2,420 shares of the company’s stock valued at $67,000 after buying an additional 622 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Ibotta by 5.1% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 17,769 shares of the company’s stock valued at $404,000 after buying an additional 855 shares during the period.

Ibotta Stock Performance

The firm has a market capitalization of $653.07 million, a P/E ratio of -95.09 and a beta of -0.61. The company has a 50-day moving average price of $30.58 and a 200-day moving average price of $26.28.

Ibotta (NYSE:IBTA) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.21) by $0.45. Ibotta had a negative return on equity of 2.39% and a negative net margin of 2.15%.The business had revenue of $82.48 million for the quarter. During the same quarter in the prior year, the business earned $0.02 earnings per share. The firm’s revenue for the quarter was down 2.5% on a year-over-year basis. Equities analysts predict that Ibotta, Inc. will post -0.62 EPS for the current year.

Ibotta declared that its board has initiated a stock buyback program on Wednesday, March 11th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 21.2% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

About Ibotta

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.