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GREENWICH, Conn. - Interactive Brokers Group, Inc. (NASDAQ:IBKR), a global electronic brokerage firm with a market capitalization of $88.11 billion, has disclosed its monthly performance metrics for February, highlighting significant year-over-year growth in trading volumes and client equity. The company’s stock has demonstrated remarkable strength, delivering an 86.21% return over the past year. According to InvestingPro analysis, the company is currently trading near its Fair Value, with 8 analysts recently revising their earnings expectations upward.
The brokerage experienced a 48% increase in Daily Average Revenue Trades (DARTs), reaching 3.617 million, which also marked a 4% rise from the previous month. Client equity showed a robust climb, ending at $587.8 billion, which is 31% higher compared to the same period last year, despite a slight 1% dip from January. This growth aligns with the company’s impressive 17.65% revenue growth and industry-leading 90.65% gross profit margin over the last twelve months.
Client margin loan balances were reported at $63.3 billion, up 34% year-over-year, although there was a 2% decrease from the prior month. In contrast, client credit balances, including $4.8 billion in insured bank deposit sweeps, rose to $123.8 billion, indicating a 20% increase from the previous year and a 3% rise from January.
The number of client accounts continued to swell, reaching 3.54 million, a 32% surge from the prior year and up 3% from the previous month. On average, there were 225 annualized cleared DARTs per client account.
Average commissions per cleared Commissionable Order were $2.80, encompassing exchange, clearing, and regulatory fees. The breakdown for key products showed an average commission of $2.11 for stock orders with an average size of 932 shares, $3.87 for equity options at 6.4 contracts, and $4.41 for futures at 3.0 contracts.
Interactive Brokers also reported a slight 0.15% increase in the value of the GLOBAL, a basket of 10 major currencies used by the company as part of its currency diversification strategy.
In terms of trade execution costs, IBKR PRO clients saw an average total cost of 3.1 basis points of trade money for U.S. Reg.-NMS stock trades in February when measured against a daily VWAP benchmark. This figure is part of a 4.0 basis points net cost for the rolling twelve months.
The company continues to emphasize its commitment to providing clients with sophisticated trading and risk management tools, research facilities, and investment products aimed at achieving superior returns. The company has maintained dividend payments for 16 consecutive years, demonstrating consistent financial stability. The information provided in this report is based on a press release statement from Interactive Brokers Group, Inc. For deeper insights into IBKR’s financial health and growth prospects, including exclusive analyst recommendations and detailed financial metrics, explore InvestingPro, where you’ll find comprehensive research reports covering 1,400+ top US stocks.
In other recent news, Interactive Brokers Group has reported a strong start to the year with significant increases in key brokerage metrics for January 2025. The company experienced a 58% year-over-year increase in Daily Average Revenue Trades (DARTs) and a 39% rise in client equity compared to January 2024. Interactive Brokers also saw a 47% increase in client margin loan balances, indicating heightened client engagement. The firm reported a fourth-quarter adjusted earnings per share (EPS) of $2.03, surpassing estimates from both BofA Securities and Piper Sandler.
BofA Securities has responded to these results by raising its price target for Interactive Brokers to $307, maintaining a Buy rating. Piper Sandler also increased its price target to $210, citing the company’s record pretax margins and robust account growth. Keefe, Bruyette & Woods maintained a Market Perform rating with a $205 price target, noting strong trading activity and account growth. Additionally, BofA analysts continue to recommend Interactive Brokers as a top Buy, highlighting the potential for increased cash sweep revenues and retail investor activity.
The company has expanded its client base significantly, with a 31% increase in client accounts year-over-year, reaching 3.45 million accounts. Analysts from BofA and Piper Sandler have expressed confidence in Interactive Brokers’ ability to capitalize on favorable market conditions and global expansion. These developments underscore Interactive Brokers’ strong position in the brokerage industry, driven by robust trading metrics and client growth.
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