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On Tuesday, Keefe, Bruyette & Woods maintained a Market Perform rating on Interactive Brokers Group (NASDAQ:IBKR) with a steady price target of $205.00. The firm highlighted the brokerage’s robust trading activity and consistent account growth in the early part of the quarter. Interactive Brokers’ Daily Average Revenue Trades (DARTs) for the first quarter of 2025 are exceeding expectations, running 15% higher than Keefe, Bruyette & Woods’ full-quarter forecast. However, the average commission per client order is tracking 9% below the firm’s estimate.
January showed a significant increase in new accounts, with a 40% annualized growth rate. Additionally, customer credits, representing the cash held at the broker, rose by 1% month-over-month. Margin balances also saw a 1% increase. These metrics suggest a positive start to the year for Interactive Brokers, building on its impressive 17.3% revenue growth over the last twelve months. For deeper insights into IBKR’s financial performance, InvestingPro subscribers can access comprehensive analysis and over 15 additional key insights.
Despite these strong indicators, Keefe, Bruyette & Woods’ first-quarter earnings per share (EPS) estimate for Interactive Brokers is $1.83, which is slightly below the consensus of $1.85. The firm notes that based on the disclosed January data, the EPS could be tracking one cent above the consensus if current trends hold steady.
The report by Keefe, Bruyette & Woods indicates that Interactive Brokers is experiencing a solid quarter, driven by higher trading volumes and an expanding customer base. The firm’s analysis suggests that these factors could positively impact the company’s earnings, albeit marginally above the market consensus. Interactive Brokers Group’s stock rating and price target remain unchanged, reflecting the firm’s outlook on the stock’s performance.
In other recent news, Interactive Brokers Group, Inc. has been making waves with robust financial metrics and positive analyst sentiment. Starting the year strong, the company reported a significant 58% year-over-year increase in Daily Average Revenue Trades (DARTs) for January 2025. Additionally, client equity saw substantial growth, reaching $591.4 billion, a 39% rise compared to the same period last year.
Interactive Brokers also reported a 47% year-over-year increase in client margin loan balances, amounting to $64.9 billion, indicating a higher level of client engagement. The firm’s client credit balances also saw a 17% year-over-year growth, totaling $120.4 billion, and the number of client accounts expanded by 31% from the previous year, reaching a total of 3.45 million.
Analysts have shown confidence in the company, with BofA Securities, Piper Sandler, Citi, and Jefferies all raising their price targets. The upgrades followed Interactive Brokers’ impressive fourth-quarter earnings report, which highlighted an adjusted earnings per share (EPS) of $2.03, surpassing both BofA’s and Piper Sandler’s estimates.
Citi analysts highlighted Interactive Brokers’ strong quarterly performance driven by robust account and margin balance growth, while Jefferies analysts noted the positive trends in the company’s business, highlighting a 30% year-over-year increase in account growth. These recent developments underscore the company’s strong financial performance and growth trajectory.
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