Interactive Brokers Group (NASDAQ:IBKR) Announces Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Earnings beat but revenue slightly missed: Interactive Brokers reported $0.60 EPS versus a $0.57 consensus (down from $1.94 a year ago), while revenue was $1.68B versus a $1.69B estimate.
• Shares slid and valuation noted: Stock traded down about 2% to $79.62, with a market cap of $135.06B and a P/E of 35.95; analysts' consensus rating is "Moderate Buy" with a $79 target.
• Notable insider selling: Vice Chairman Earl H. Nemser sold 145,000 shares (~$11.3M) and insiders sold 400,000 shares last quarter, leaving insiders with 2.8% ownership.

Interactive Brokers Group (NASDAQ:IBKR - Get Free Report) posted its quarterly earnings results on Tuesday. The financial services provider reported $0.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.03, Zacks reports. Interactive Brokers Group had a net margin of 9.44% and a return on equity of 5.12%. The business had revenue of $1.68 billion during the quarter, compared to the consensus estimate of $1.69 billion. During the same quarter last year, the firm posted $1.94 EPS.

Interactive Brokers Group Trading Down 2.0%

Shares of NASDAQ:IBKR traded down $1.63 during midday trading on Tuesday, reaching $79.62. The company had a trading volume of 5,348,289 shares, compared to its average volume of 4,977,453. The company's 50 day moving average price is $70.99 and its 200 day moving average price is $69.51. The stock has a market cap of $135.06 billion, a P/E ratio of 35.95, a P/E/G ratio of 2.26 and a beta of 1.25. Interactive Brokers Group has a 52-week low of $38.53 and a 52-week high of $82.88.

Insider Buying and Selling at Interactive Brokers Group

In related news, Vice Chairman Earl H. Nemser sold 145,000 shares of the business's stock in a transaction dated Friday, January 23rd. The shares were sold at an average price of $77.85, for a total value of $11,288,250.00. Following the transaction, the insider directly owned 155,000 shares of the company's stock, valued at approximately $12,066,750. The trade was a 48.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 400,000 shares of company stock valued at $30,725,122. 2.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Interactive Brokers Group

Several institutional investors have recently bought and sold shares of IBKR. AQR Capital Management LLC lifted its stake in Interactive Brokers Group by 24.7% in the first quarter. AQR Capital Management LLC now owns 13,704 shares of the financial services provider's stock valued at $2,269,000 after purchasing an additional 2,713 shares during the last quarter. Brown Advisory Inc. lifted its stake in Interactive Brokers Group by 307.9% in the second quarter. Brown Advisory Inc. now owns 14,497 shares of the financial services provider's stock valued at $803,000 after purchasing an additional 10,943 shares during the last quarter. Cerity Partners LLC purchased a new position in Interactive Brokers Group in the second quarter valued at approximately $318,000. Daiwa Securities Group Inc. lifted its stake in Interactive Brokers Group by 291.2% in the second quarter. Daiwa Securities Group Inc. now owns 35,600 shares of the financial services provider's stock valued at $1,973,000 after purchasing an additional 26,500 shares during the last quarter. Finally, AXA S.A. lifted its holdings in Interactive Brokers Group by 128.1% during the second quarter. AXA S.A. now owns 12,816 shares of the financial services provider's stock valued at $710,000 after purchasing an additional 7,197 shares during the last quarter. Hedge funds and other institutional investors own 23.80% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on IBKR. Barclays lifted their price target on Interactive Brokers Group from $83.00 to $85.00 and gave the company an "overweight" rating in a research note on Wednesday, April 8th. BMO Capital Markets lifted their price objective on shares of Interactive Brokers Group from $80.00 to $82.00 and gave the stock an "outperform" rating in a report on Wednesday, January 21st. Zacks Research downgraded shares of Interactive Brokers Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, February 24th. Jefferies Financial Group cut their price objective on shares of Interactive Brokers Group from $91.00 to $81.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Interactive Brokers Group in a report on Monday, December 29th. Seven investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Interactive Brokers Group presently has an average rating of "Moderate Buy" and a consensus target price of $79.00.

About Interactive Brokers Group

Interactive Brokers Group, Inc NASDAQ: IBKR is a global electronic brokerage holding company that provides trading, clearing and custody services to retail traders, institutional investors, proprietary trading groups and financial advisors. The firm offers direct access to a wide range of asset classes, including equities, options, futures, foreign exchange, bonds and exchange-traded funds across many international markets. Interactive Brokers emphasizes electronic order execution, automated trading and low transaction costs as core differentiators for its clients.

Its product suite centers on advanced trading platforms and infrastructure.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.