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$1.5m selling shares at an average price of US$36.08. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

Ibotta Insider Transactions Over The Last Year

In fact, the recent sale by Independent Director Thomas Lehrman was not their only sale of Ibotta shares this year. Earlier in the year, they fetched US$32.11 per share in a -US$2.4m sale. That means that an insider was selling shares at slightly below the current price (US$38.84). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 35% of Thomas Lehrman's stake.

Thomas Lehrman divested 176.55k shares over the last 12 months at an average price of US$32.86. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Ibotta

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Ibotta insiders own 25% of the company, worth about US$219m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Ibotta Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Ibotta.

But note: Ibotta may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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.