Independent Director Of Ibotta Sold 38% Of Their Shares

We wouldn't blame Ibotta, Inc. (NYSE:IBTA) shareholders if they were a little worried about the fact that Thomas Lehrman, the Independent Director recently netted about US$12m selling shares at an average price of US$73.55. That's a big disposal, and it decreased their holding size by 38%, which is notable but not too bad.

See our latest analysis for Ibotta

Ibotta Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Thomas Lehrman was not the only time they sold Ibotta shares this year. Earlier in the year, they fetched US$88.00 per share in a -US$18m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$73.64. So it may not shed much light on insider confidence at current levels.

Ibotta insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Ibotta

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Ibotta insiders own 18% of the company, worth about US$414m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Ibotta Insiders?

Insiders haven't bought Ibotta stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Ibotta you should know about.

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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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.