Interactive Brokers Group, Inc. (NASDAQ:IBKR) Sees Significant Decrease in Short Interest

Key Points

• Interactive Brokers Group experienced a 31.2% decrease in short interest in September, dropping to 11,740,000 shares compared to 17,060,000 shares in August.
• Analysts have positive sentiment towards Interactive Brokers, with several firms upgrading their ratings and price targets, resulting in a consensus rating of "Moderate Buy" with a target price of $64.47.
• The company declared a $0.08 quarterly dividend on September 12th, translating to an annual yield of 0.5% and a payout ratio of 16.49%.

Interactive Brokers Group, Inc. (NASDAQ:IBKR - Get Free Report) was the recipient of a significant decrease in short interest during the month of September. As of September 15th, there was short interest totaling 11,740,000 shares, a decrease of 31.2% from the August 31st total of 17,060,000 shares. Based on an average daily volume of 6,950,000 shares, the short-interest ratio is presently 1.7 days. Based on an average daily volume of 6,950,000 shares, the short-interest ratio is presently 1.7 days.

Analyst Ratings Changes

Several research firms recently commented on IBKR. BMO Capital Markets initiated coverage on shares of Interactive Brokers Group in a report on Friday. They issued an "outperform" rating and a $82.00 price target on the stock. Piper Sandler increased their price target on Interactive Brokers Group from $45.50 to $65.00 and gave the company an "overweight" rating in a report on Tuesday, July 15th. Barclays boosted their price objective on Interactive Brokers Group from $65.00 to $73.00 and gave the stock an "overweight" rating in a research note on Friday, July 18th. Wall Street Zen upgraded Interactive Brokers Group from a "sell" rating to a "hold" rating in a report on Saturday, June 21st. Finally, Citigroup lifted their price objective on shares of Interactive Brokers Group from $53.75 to $60.00 and gave the company a "buy" rating in a research note on Monday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $64.47.

Insider Activity at Interactive Brokers Group

In related news, CFO Paul Jonathan Brody sold 17,058 shares of the stock in a transaction on Friday, September 26th. The stock was sold at an average price of $65.78, for a total value of $1,122,075.24. Following the transaction, the chief financial officer directly owned 28,289 shares of the company's stock, valued at approximately $1,860,850.42. This trade represents a 37.62% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last three months, insiders sold 1,205,683 shares of company stock worth $77,217,965. Corporate insiders own 2.97% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of IBKR. N.E.W. Advisory Services LLC bought a new position in Interactive Brokers Group in the 1st quarter worth $26,000. ORG Partners LLC boosted its position in shares of Interactive Brokers Group by 312.9% during the 2nd quarter. ORG Partners LLC now owns 479 shares of the financial services provider's stock valued at $27,000 after acquiring an additional 363 shares in the last quarter. Huntington National Bank grew its stake in shares of Interactive Brokers Group by 51.8% in the 2nd quarter. Huntington National Bank now owns 516 shares of the financial services provider's stock valued at $29,000 after purchasing an additional 176 shares during the period. Contravisory Investment Management Inc. lifted its holdings in shares of Interactive Brokers Group by 300.0% during the second quarter. Contravisory Investment Management Inc. now owns 564 shares of the financial services provider's stock valued at $31,000 after acquiring an additional 423 shares during the period. Finally, Private Wealth Asset Management LLC grew its stake in Interactive Brokers Group by 300.0% during the second quarter. Private Wealth Asset Management LLC now owns 580 shares of the financial services provider's stock worth $32,000 after buying an additional 435 shares during the last quarter. Institutional investors own 23.80% of the company's stock.

Interactive Brokers Group Price Performance

NASDAQ IBKR traded up $0.06 on Monday, hitting $70.42. 1,531,845 shares of the company were exchanged, compared to its average volume of 7,302,958. Interactive Brokers Group has a twelve month low of $32.82 and a twelve month high of $71.78. The firm has a market capitalization of $119.45 billion, a P/E ratio of 36.18, a price-to-earnings-growth ratio of 2.89 and a beta of 1.22. The company's 50 day moving average price is $64.33 and its 200-day moving average price is $54.71.

Interactive Brokers Group (NASDAQ:IBKR - Get Free Report) last released its earnings results on Thursday, July 17th. The financial services provider reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.05. Interactive Brokers Group had a net margin of 9.78% and a return on equity of 4.92%. The business had revenue of $1.48 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same period last year, the firm posted $1.76 earnings per share. The firm's quarterly revenue was up 14.7% compared to the same quarter last year. As a group, equities analysts expect that Interactive Brokers Group will post 7.46 EPS for the current year.

Interactive Brokers Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, September 12th. Shareholders of record on Monday, September 1st were paid a $0.08 dividend. The ex-dividend date was Friday, August 29th. This represents a $0.32 dividend on an annualized basis and a yield of 0.5%. Interactive Brokers Group's payout ratio is 16.49%.

About Interactive Brokers Group

Interactive Brokers Group, Inc operates as an automated electronic broker worldwide. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies.

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