A Look at Interactive Brokers Group Inc. (IBKR) Shares in the Recent Past Indicates Growth

Interactive Brokers Group Inc. (NASDAQ: IBKR) stock jumped 2.94% on Friday to $60.95 against a previous-day closing price of $59.21. With 2.26 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.92 million shares. During the session, the Capital Markets company that operates in wider Financial sector, reached to the highest price of $61.06 whereas the lowest price it dropped to was $59.18. The 52-week range on IBKR shows that it touched its highest point at $82.83 and its lowest point at $52.18 during that stretch. It currently has a 1-year price target of $92.00. With its current market cap of 24.96 billion, IBKR has annualized dividend of $0.40 while the current yield stands at 0.66%. Beta for the stock currently stands at 0.79.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IBKR was up-trending over the past week, with a rise of 4.65%, but this was up by 9.41% over a month. Three-month performance surged to 1.84% while six-month performance fell -14.19%. The stock lost -1.63% in the past year, while it has lost -23.26% so far this year. A look at the trailing 12-month EPS for IBKR yields 2.57 with Next year EPS estimates of 4.77. For the next quarter, that number is 0.99. This implies an EPS growth rate of 34.10% for this year and 27.03% for next year. EPS is expected to grow by 18.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 21.00%.

Float and Shares Shorts:

At present, 98.23 million IBKR shares are outstanding with a float of 87.87 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.37 million, which was 2.41% higher than short shares on Jun 14, 2022. In addition to Mr. Milan Galik as the firm’s Pres, CEO & Director, Mr. Paul Jonathan Brody serves as its CFO, Treasurer, Sec. & Director.

Institutional Ownership:

Through their ownership of 90.23% of IBKR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.93% of IBKR, in contrast to 58.40% held by mutual funds. Shares owned by individuals account for 31.20%. As the largest shareholder in IBKR with 8.65% of the stake, Kayne Anderson Rudnick Investment holds 8,494,604 shares worth 8,494,604. A second-largest stockholder of IBKR, The Vanguard Group, Inc., holds 8,198,794 shares, controlling over 8.34% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in IBKR, holding 6,625,253 shares or 6.74% stake. With a 2.81% stake in IBKR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,757,263 shares are owned by the mutual fund manager. The Virtus KAR Small Cap Growth Fund, which owns about 2.69% of IBKR stock, is the second-largest Mutual Fund holder. It holds 2,645,856 shares valued at 145.55 million. iShares Core S&P Mid Cap ETF holds 2.56% of the stake in IBKR, owning 2,519,560 shares worth 138.6 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IBKR since 5 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With IBKR analysts setting a high price target of $114.00 and a low target of $77.00, the average target price over the next 12 months is $92.00. Based on these targets, IBKR could surge 87.04% to reach the target high and rise by 26.33% to reach the target low. Reaching the average price target will result in a growth of 50.94% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. IBKR will report FY 2022 earnings on 01/17/2023. Analysts have provided yearly estimates in a range of $3.98 being high and $3.50 being low. For IBKR, this leads to a yearly average estimate of $3.75. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Interactive Brokers Group Inc. surprised analysts by -$0.08 when it reported $0.84 EPS against a consensus estimate of $0.92. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $1.07 and the low estimate is $0.87. The average estimate for the next quarter is thus $0.99.

Dividends & Yield:

In terms of dividends, IBKR has a current ratio of $0.4, which is $0.4 over the trailing 12-months, while a dividend of $0.40 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and IBKR currently yields $0.66. In the past year, IBKR’s dividend yield has been $0.66, but when looking at the stock over the past five years, its yield has been $0.71. Accordingly, IBKR has a current buyback yield of $0.02. This was $0.02 for the TTM.

Summary of Insider Activity:

Insiders traded IBKR stock several times over the past three months with 0 Buys and 101 Sells. In these transactions, 0 shares were bought while 1,061,248 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 719 over the past year. The total number of shares bought during that period was 184,295 while 6,813,480 shares were sold.

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