Interactive Brokers Group, Inc. $IBKR Stock: Assenagon Asset Management S.A. Trims Position

Key Points

• Assenagon Asset Management cut its Interactive Brokers position by 56.4% in the third quarter, selling 363,986 shares and retaining 281,185 shares worth approximately $24.0 million. Other institutional investors increased or initiated positions, and institutions collectively own 23.8% of IBKR.
• Interactive Brokers reported strong third-quarter results, with revenue up 15.6% year over year to $1.87 billion and adjusted EPS of $0.67, matching analyst expectations. The company also raised its quarterly dividend 71.4% to $0.15 per share, or $0.60 annualized.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $103.12, but investors face valuation and interest-rate risks. A 25-basis-point decline in U.S. rates could reduce annual net interest income by roughly $83 million.

Assenagon Asset Management S.A. reduced its position in shares of Interactive Brokers Group, Inc. (NASDAQ:IBKR - Free Report) by 56.4% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 281,185 shares of the financial services provider's stock after selling 363,986 shares during the quarter. Assenagon Asset Management S.A.'s holdings in Interactive Brokers Group were worth $24,019,000 at the end of the most recent quarter.

A number of other hedge funds also recently modified their holdings of the business. Curated Wealth Partners LLC purchased a new stake in Interactive Brokers Group in the 3rd quarter worth approximately $254,000. Covenant Asset Management LLC purchased a new position in shares of Interactive Brokers Group during the 3rd quarter valued at $2,119,000. KG Capital Management increased its position in Interactive Brokers Group by 22.6% in the 3rd quarter. KG Capital Management now owns 8,718 shares of the financial services provider's stock worth $745,000 after purchasing an additional 1,605 shares during the last quarter. Mather Group LLC. increased its position in Interactive Brokers Group by 70.4% in the 3rd quarter. Mather Group LLC. now owns 656 shares of the financial services provider's stock worth $56,000 after purchasing an additional 271 shares during the last quarter. Finally, Fairfield Financial Advisors LTD increased its position in Interactive Brokers Group by 14.9% in the 3rd quarter. Fairfield Financial Advisors LTD now owns 31,786 shares of the financial services provider's stock worth $2,715,000 after purchasing an additional 4,121 shares during the last quarter. Hedge funds and other institutional investors own 23.80% of the company's stock.

More Interactive Brokers Group News

Here are the key news stories impacting Interactive Brokers Group this week:

• Positive Sentiment: Analyst and rating support: Barclays raised its price target to $117 from $115, while Zacks upgraded IBKR to Rank #1, or “Strong Buy,” citing improving earnings prospects. Evercore ISI also initiated coverage with an Outperform rating. Barclays price target article
• Positive Sentiment: Revenue and customer growth remained healthy: Third-quarter adjusted net revenue rose 15.6% year over year to approximately $1.87 billion, supported by higher net interest income, commissions and customer growth. Commissions increased 12% to about $602 million, while management highlighted continued expansion in global market access, institutional services and AI-powered trading tools. Interactive Brokers revenue growth article
• Positive Sentiment: Dividend increased substantially: Interactive Brokers declared a quarterly dividend of $0.15 per share, up 71.4% from $0.0875, payable December 14 to shareholders of record December 1. The new annualized payout is $0.60 per share. Interactive Brokers dividend announcement
• Neutral Sentiment: Results matched expectations: Adjusted diluted earnings were $0.67 per share versus consensus of $0.67, while adjusted revenue of $1.87 billion was slightly above the $1.86 billion estimate. Earnings improved from $0.57 per share a year earlier, but the limited upside likely contributed to the muted market reaction. Interactive Brokers third-quarter results
• Negative Sentiment: Valuation and interest-rate risks remain: Investors remain sensitive to IBKR’s elevated valuation and exposure to interest rates. A 25-basis-point decline in U.S. rates could reduce annual net interest income by roughly $83 million, while moderating trading activity and lower commission rates could pressure future growth. Interactive Brokers valuation analysis

Interactive Brokers Group Stock Performance

IBKR opened at $82.69 on Monday. The business has a 50 day moving average of $90.32 and a 200-day moving average of $87.29. The stock has a market capitalization of $140.69 billion, a price-to-earnings ratio of 31.80, a P/E/G ratio of 1.46 and a beta of 1.37. Interactive Brokers Group, Inc. has a 1-year low of $58.95 and a 1-year high of $98.75.

Interactive Brokers Group (NASDAQ:IBKR - Get Free Report) last announced its earnings results on Thursday, October 15th. The financial services provider reported $0.67 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.67. Interactive Brokers Group had a net margin of 10.03% and a return on equity of 5.38%. The business had revenue of $1.87 billion for the quarter, compared to analyst estimates of $1.86 billion. During the same quarter in the previous year, the firm posted $0.57 earnings per share. Interactive Brokers Group's revenue was up 15.6% compared to the same quarter last year. Equities analysts predict that Interactive Brokers Group, Inc. will post 2.70 EPS for the current year.

Interactive Brokers Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, December 14th. Shareholders of record on Tuesday, December 1st will be issued a $0.15 dividend. This is a boost from Interactive Brokers Group's previous quarterly dividend of $0.0875. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $0.60 dividend on an annualized basis and a yield of 0.7%. Interactive Brokers Group's payout ratio is currently 23.08%.

Analysts Set New Price Targets

Several analysts have commented on the stock. CICC Research boosted their target price on shares of Interactive Brokers Group from $90.00 to $110.00 and gave the stock an "outperform" rating in a research report on Thursday, July 23rd. Barclays set a $117.00 price target on shares of Interactive Brokers Group and gave the company an "overweight" rating in a report on Friday. BMO Capital Markets restated an "outperform" rating and set a $100.00 target price (down from $105.00) on shares of Interactive Brokers Group in a report on Friday. Weiss Ratings upgraded Interactive Brokers Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday. Finally, UBS Group reiterated a "neutral" rating and set a $101.00 price target (down from $102.00) on shares of Interactive Brokers Group in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $103.12.

Interactive Brokers Group Company Profile

Interactive Brokers Group, Inc is a global electronic brokerage company that provides trading, investment and portfolio management services to individual investors, institutional clients, financial advisers, hedge funds, proprietary trading firms and introducing brokers. Through its subsidiaries, the company offers access to a broad range of markets and financial instruments, including stocks, options, futures, foreign exchange, bonds, mutual funds, exchange-traded funds and certain digital assets.

Interactive Brokers provides its services through platforms such as Trader Workstation, IBKR Mobile and the Client Portal, as well as application programming interfaces for automated and institutional trading.

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