GREENWICH, Conn. - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ: IBKR), a global electronic brokerage firm, has disclosed its performance metrics for the month of June, revealing significant growth in its trading activity. The company, known for its automated trade execution and custody services, reported a 26% increase in Daily Average Revenue Trades (DARTs) compared to the same period last year, with 2.469 million trades per day. This figure also marks a 5% rise from the previous month.
Client equity at the end of June stood at $497.2 billion, a notable 36% jump from the previous year and a 2% increase from May. Additionally, client margin loan balances rose to $55.1 billion, up 32% year-over-year and 4% month-over-month.
The firm's client credit balances, which include $4.1 billion in insured bank deposit sweeps, were slightly higher by 8% from the previous year, reaching $107.1 billion, and remained approximately even with the prior month. Interactive Brokers also experienced growth in its client accounts, which numbered 2.92 million by the end of June, reflecting a 28% increase from the prior year and a 2% rise from May.
The brokerage's data showed that the average commission per cleared Commissionable Order was $2.99, with specific figures provided for stocks, equity options, and futures trades.
In terms of other financial metrics, Interactive Brokers reported a modest mark-to-market gain of $489,000 on its U.S. government securities portfolio for the quarter ending June 30th. The company's currency diversification strategy, measured in GLOBALs, a basket of 10 major currencies, saw a slight decrease of 0.21% in June and 0.22% for the quarter.
Interactive Brokers also shared details on the all-in cost of trade execution for its IBKR PRO clients. The average U.S. Reg-NMS stock trade in June amounted to $21,541, with the total cost of executing and clearing such stocks through IB being about 4.1 basis points of trade money, against a daily VWAP benchmark.
In other recent news, Interactive Brokers Group, Inc. reported a loss of $48 million due to a technical glitch at the New York Stock Exchange involving Berkshire Hathaway (NYSE:BRKa) Class A shares. Despite this setback, the firm has shown remarkable resilience, exceeding Q1 2024 revenue expectations by $18 million. Analysts from Piper Sandler and Barclays Capital Inc. maintain an Overweight rating on the company.
Interactive Brokers has also expanded its trading services to include European stock options and equity index futures through Cboe Europe Derivatives, providing clients with additional avenues for trading European equity derivatives. This is in line with the firm's commitment to offer a wide range of products for enhanced trading strategies.
The company has also introduced Bitcoin and Ether Exchange Traded Products for trading on the Hong Kong Stock Exchange, indicating a robust growth trajectory.
InvestingPro Insights
Interactive Brokers Group, Inc. (NASDAQ: IBKR) has been demonstrating strong performance metrics, and recent data from InvestingPro further underscores the company's financial health and market position. Here are some key insights:
InvestingPro Data metrics indicate that Interactive Brokers boasts a market capitalization of $13.4 billion, with a Price/Earnings (P/E) ratio of 21.14. This is closely aligned with the adjusted P/E ratio for the last twelve months as of Q1 2024, which stands at 21.21. The company's Price/Book ratio during the same period is relatively high at 14.01, reflecting a robust valuation in comparison to its book value.
In terms of growth, Interactive Brokers has seen a significant 28.41% increase in revenue over the last twelve months as of Q1 2024, with a quarterly revenue growth of 14.22% in Q1 2024. This aligns with the company's reported increase in trading activity and client equity.
InvestingPro Tips for Interactive Brokers highlight that the company is trading at a low P/E ratio relative to near-term earnings growth, suggesting potential value for investors considering the company's earnings trajectory. Additionally, Interactive Brokers has maintained dividend payments for 15 consecutive years, illustrating a commitment to returning value to shareholders.
For those interested in deeper analysis and additional insights on Interactive Brokers, InvestingPro offers a variety of tips. There are 7 more InvestingPro Tips available at: https://www.investing.com/pro/IBKR. These tips provide a comprehensive look at the company's financials, market performance, and future outlook, which can be invaluable for making informed investment decisions.
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