Interactive Brokers Group (NASDAQ:IBKR) Reaches New 1-Year High – Should You Buy?

Interactive Brokers Group, Inc. (NASDAQ:IBKR)’s stock price hit a new 52-week high during trading on Tuesday . The company traded as high as $97.89 and last traded at $98.2960, with a volume of 2604169 shares changing hands. The stock had previously closed at $93.05.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on IBKR. Bank of America increased their target price on Interactive Brokers Group from $83.00 to $106.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. BMO Capital Markets reiterated an “outperform” rating and issued a $110.00 price objective (up from $105.00) on shares of Interactive Brokers Group in a research report on Wednesday, July 22nd. Barclays set a $114.00 target price on Interactive Brokers Group and gave the company an “overweight” rating in a report on Wednesday, July 22nd. Zacks Research upgraded shares of Interactive Brokers Group from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 15th. Finally, Weiss Ratings upgraded shares of Interactive Brokers Group from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $96.89.

Interactive Brokers Group Stock Up 5.7%

The firm has a market cap of $167.35 billion, a price-to-earnings ratio of 39.34, a price-to-earnings-growth ratio of 1.73 and a beta of 1.34. The business has a 50 day moving average of $91.96 and a 200 day moving average of $81.94.

Interactive Brokers Group (NASDAQ:IBKR) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.64 by $0.05. The firm had revenue of $1.88 billion during the quarter, compared to the consensus estimate of $1.80 billion. Interactive Brokers Group had a net margin of 9.94% and a return on equity of 5.37%. The firm’s revenue for the quarter was up 28.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.51 EPS. Research analysts predict that Interactive Brokers Group, Inc. will post 2.69 earnings per share for the current year.

Interactive Brokers Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 14th. Stockholders of record on Tuesday, September 1st will be given a $0.0875 dividend. This represents a $0.35 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 1st. Interactive Brokers Group’s payout ratio is currently 14.00%.

Institutional Trading of Interactive Brokers Group

Hedge funds and other institutional investors have recently bought and sold shares of the company. California State Teachers Retirement System raised its holdings in Interactive Brokers Group by 8,229.0% in the 2nd quarter. California State Teachers Retirement System now owns 53,724,396 shares of the financial services provider’s stock valued at $4,676,171,000 after acquiring an additional 53,079,364 shares during the last quarter. State Street Corp boosted its holdings in shares of Interactive Brokers Group by 1.0% during the fourth quarter. State Street Corp now owns 18,836,521 shares of the financial services provider’s stock worth $1,211,377,000 after purchasing an additional 187,763 shares during the last quarter. Cantillon Capital Management LLC grew its position in shares of Interactive Brokers Group by 0.8% in the fourth quarter. Cantillon Capital Management LLC now owns 12,759,904 shares of the financial services provider’s stock valued at $820,589,000 after purchasing an additional 95,878 shares during the period. Wellington Management Group LLP increased its stake in Interactive Brokers Group by 17.6% in the third quarter. Wellington Management Group LLP now owns 10,901,171 shares of the financial services provider’s stock valued at $750,110,000 after purchasing an additional 1,630,620 shares during the last quarter. Finally, Orbis Allan Gray Ltd increased its stake in Interactive Brokers Group by 178.8% in the second quarter. Orbis Allan Gray Ltd now owns 9,740,072 shares of the financial services provider’s stock valued at $539,697,000 after purchasing an additional 6,246,715 shares during the last quarter. 23.80% of the stock is owned by hedge funds and other institutional investors.

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.