Amit Doshi, a director at Ibotta, Inc. (NASDAQ:IBTA), has sold shares of the company, according to a recent SEC filing. On December 3, Doshi disposed of a total of 13,437 shares of Ibotta's Class A Common Stock. These transactions were conducted at prices ranging from $73.15 to $74.96 per share, amounting to a total value of $989,802. The sale occurred as the $2.23 billion market cap company maintains impressive gross profit margins of 87% and trades at a P/E ratio of 135. InvestingPro analysis indicates the stock is currently undervalued.
Following these transactions, Doshi holds 186,563 shares indirectly through Harbor Spring Master Fund, LP, where he is the Managing Partner of Harbor Spring Capital, LLC. Additionally, Doshi maintains direct ownership of 38,328 shares, including certain restricted stock units. The company demonstrates strong financial health with a "GREAT" overall rating according to InvestingPro, which offers comprehensive analysis and 12 additional key insights about IBTA in its Pro Research Report, available exclusively to subscribers.
In other recent news, Ibotta Inc. has been the subject of various adjustments following its third-quarter results for 2024. Despite a dip in direct-to-consumer revenue, the company exceeded expectations due to strong performance in third-party partner promotions. However, its rapid consumption of the 2024 advertising budget led to projections of lower fourth-quarter revenue and EBITDA. As a result, Citi cut its stock price target to $82 from $95, while maintaining a buy rating.
On the other hand, Needham also reduced its price target to $80, citing budget constraints anticipated to persist into 2025 and a cautious stance on the demand from the recent CART launch. UBS downgraded Ibotta from Buy to Neutral and lowered the price target to $65, expressing concerns about the correlation between the growth of Ibotta's user base and the increase in advertiser budgets.
Goldman Sachs (NYSE:GS), however, upgraded Ibotta from Neutral to Buy, citing a compelling valuation and risk/reward balance. This comes alongside Ibotta's initiation of a $100 million share repurchase program, indicating potential future growth despite the near-term challenges in the advertising sector. These recent developments highlight the dynamic nature of Ibotta's operations in the current market landscape.
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