Don't Ignore The Insider Selling In Ibotta
Some Ibotta, Inc. (NYSE:IBTA) shareholders may be a little concerned to see that the Chief Revenue Officer, Chris Riedy, recently sold a substantial US$736k worth of stock at a price of US$60.00 per share. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.
Ibotta Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Thomas Lehrman, for US$2.4m worth of shares, at about US$32.11 per share. That means that an insider was selling shares at slightly below the current price (US$60.30). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 35% of Thomas Lehrman's stake.
Insiders in Ibotta didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Ibotta
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Insider Ownership Of Ibotta
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ibotta insiders own 23% of the company, currently worth about US$324m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Ibotta Insiders?
Insiders sold Ibotta shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Ibotta you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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