Interactive Brokers Group Inc. (NASDAQ: IBKR) stock jumped 0.67% on Thursday to $92.70 against a previous-day closing price of $92.08. With 0.77 million shares changed hands, the volume of the stock remained lighter 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 $92.99 whereas the lowest price it dropped to was $91.95. The 52-week range on IBKR shows that it touched its highest point at $95.59 and its lowest point at $62.70 during that stretch. It currently has a 1-year price target of $108.50. With its current market cap of 38.95 billion, IBKR has annualized dividend of $0.40 while the current yield stands at 0.43%. Beta for the stock currently stands at 0.79.
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 down-trending over the past week, with a drop of -0.29%, but this was up by 1.22% over a month. Three-month performance surged to 16.19% while six-month performance rose 21.96%. The stock gained 34.97% in the past year, while it has gained 28.13% so far this year. A look at the trailing 12-month EPS for IBKR yields 4.90 with Next year EPS estimates of 6.12. For the next quarter, that number is 1.49. This implies an EPS growth rate of 15.70% for this year and 7.65% for next year. EPS is expected to grow by 17.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 1.00%.
Float and Shares Shorts:
At present, 103.59 million IBKR shares are outstanding with a float of 102.69 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.41 million, which was 2.25% higher than short shares on Jul 30, 2023. In addition to Mr. Milan Galik as the firm’s Pres, CEO & Director, Mr. Paul Jonathan Brody serves as its CFO, Treasurer, Sec. & Director.
Other institutions hold 9.04% of IBKR, in contrast to 53.72% held by mutual funds. Shares owned by individuals account for 34.76%. As the largest shareholder in IBKR with 8.74% of the stake, The Vanguard Group, Inc. holds 9,116,298 shares worth 9,116,298. A second-largest stockholder of IBKR, Orbis Investment Management Ltd., holds 8,100,077 shares, controlling over 7.76% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in IBKR, holding 8,048,449 shares or 7.72% stake. With a 3.17% stake in IBKR, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 3,306,230 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.91% of IBKR stock, is the second-largest Mutual Fund holder. It holds 3,040,306 shares valued at 265.51 million. Vanguard Mid Cap Index Fund holds 2.17% of the stake in IBKR, owning 2,263,397 shares worth 197.66 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, IBKR reported revenue of $768.00M and operating income of $393.00M. The EBITDA in the recently reported quarter was $417.00M and diluted EPS was $0.72.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IBKR since 0 analysts follow the stock currently. 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 $125.00 and a low target of $99.00, the average target price over the next 12 months is $108.50. Based on these targets, IBKR could surge 34.84% to reach the target high and rise by 6.8% to reach the target low. Reaching the average price target will result in a growth of 17.04% 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.
Summary of Insider Activity:
Insiders traded IBKR stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 1,896,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 163 over the past year. The total number of shares bought during that period was 2,115,467 while 1,455,314 shares were sold.