Latest news with #IBKR
Yahoo
3 days ago
- Business
- Yahoo
This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy
Key Points Interactive Brokers operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrency. Interactive stock has soared by more than 700% since it went public in 2007, prompting a 4-for-1 stock split last month. That incredible run of performance is likely to continue, based on Interactive's latest operating results. 10 stocks we like better than Interactive Brokers Group › When a company creates a significant amount of value over the long term, its stock price can soar into the hundreds or even thousands of dollars, which makes it difficult for the average retail investor to buy whole shares. But a stock split solves that by increasing the number of shares in circulation, which organically reduces the price per share by a proportionate amount. It doesn't change the underlying value of the company, it just makes the stock more accessible to smaller investors. Interactive Brokers (NASDAQ: IBKR) operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrencies. Its stock has gained more than 700% since going public in 2007, and it was recently trading for more than $200. The company executed a 4-for-1 stock split in June, which increased its share count fourfold and reduced its price per share to just $50 at the time. Interactive is likely to continue creating value for investors over the long term, so here's why its stock might be a great buy right now. Interactive is experiencing an influx of new clients Interactive Brokers recently reported its operating results for the second quarter. The company had a record 3.87 million customers at the end of the period, which was a whopping 32% increase from the same time last year. Stock market volatility tends to attract new investors, and the second quarter had that in spades. On April 2, President Donald Trump announced a series of tariffs on America's trading partners, which contributed to a 19% plunge in the S&P 500 (SNPINDEX: ^GSPC) index as investors braced for a global economic slowdown. But by June 30, the president had paused the most aggressive aspects of his new trade policy, which led to a full recovery in the S&P -- and even a new high. The elevated volatility drove a staggering 49% year-over-year increase in Interactive's DARTs (daily active revenue trades) metric during Q2, which means clients were feverishly adjusting their portfolios amid the chaos. Customer equity also surged 34% to a new quarterly high of $664.6 billion by the end of the quarter. This represents the collective value of all the stocks, securities, and cash customers are holding on Interactive's platform. The new all-time high in the S&P 500 (and other market indexes) boosted the customer equity figure, but the influx of new clients was also a tailwind. Interactive earns commissions based on the value of every stock, cryptocurrency, options, and futures transaction executed by its clients, so a higher customer equity figure can directly translate into more revenue for the company. Interactive's commission revenue is growing rapidly Interactive Brokers generated $1.48 billion in total revenue during the second quarter, which was a 20% increase from the year-ago period. The company's revenue has two main components: Commission revenue, which Interactive earns by processing transactions for its clients. This came in at $516 million during the quarter, which was up 27% year over year. Net interest revenue, which is the interest Interactive earns on its own cash reserves, the cash it's holding for its clients, and on margin loans. This came in at $860 million during the quarter, up 9%. There is a third, much smaller component made up of other service fees and income, which came in at $104 million. Interactive's strong commission revenue growth reflects the surge in both trading volume and customer equity in the second quarter. Net interest revenue grew at a more modest pace because interest rates are currently lower than they were a year ago, after the Federal Reserve's three rate cuts near the end of 2024. Analyst expect the Fed to continue cutting rates in 2025 and 2026, which could eventually lead to declines in Interactive's net interest revenue, unless its margin loan book and cash balances climb significantly to offset them. Interactive stock could be a great long-term buy Interactive Brokers is highly profitable, delivering $0.51 in earnings per share (EPS) during the second quarter, representing growth of 24%. The result carried the company's trailing-12-month EPS to $1.94 (adjusted for its recent 4-for-1 stock split). That places its stock at a price-to-earnings (P/E) ratio of 32, which isn't exactly cheap considering the S&P 500 trades at a P/E ratio of 24.7. But the premium valuation might be justified considering the stock has consistently beaten the index since going public in 2007. As I mentioned at the top, Interactive stock is up by more than 700% since then, which translates to a compound annual return of 12.5%. That's better than the average annual return of 10.1% from the S&P 500 during the same period. It's possible Interactive's valuation becomes a barrier to further upside in the short term, but with quarterly customer growth of at least 30% for the past three consecutive quarters, soaring trading volumes, and record client equity, I think its stock is in a great position to continue beating the market over the long term. Thanks to the recent split, investors of all kinds have an opportunity to own one full share. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy
Key Points Interactive Brokers operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrency. Interactive stock has soared by more than 700% since it went public in 2007, prompting a 4-for-1 stock split last month. That incredible run of performance is likely to continue, based on Interactive's latest operating results. 10 stocks we like better than Interactive Brokers Group › When a company creates a significant amount of value over the long term, its stock price can soar into the hundreds or even thousands of dollars, which makes it difficult for the average retail investor to buy whole shares. But a stock split solves that by increasing the number of shares in circulation, which organically reduces the price per share by a proportionate amount. It doesn't change the underlying value of the company, it just makes the stock more accessible to smaller investors. Interactive Brokers (NASDAQ: IBKR) operates one of the world's largest online investing platforms for stocks, options, futures, and cryptocurrencies. Its stock has gained more than 700% since going public in 2007, and it was recently trading for more than $200. The company executed a 4-for-1 stock split in June, which increased its share count fourfold and reduced its price per share to just $50 at the time. Interactive is likely to continue creating value for investors over the long term, so here's why its stock might be a great buy right now. Interactive is experiencing an influx of new clients Interactive Brokers recently reported its operating results for the second quarter. The company had a record 3.87 million customers at the end of the period, which was a whopping 32% increase from the same time last year. Stock market volatility tends to attract new investors, and the second quarter had that in spades. On April 2, President Donald Trump announced a series of tariffs on America's trading partners, which contributed to a 19% plunge in the S&P 500 (SNPINDEX: ^GSPC) index as investors braced for a global economic slowdown. But by June 30, the president had paused the most aggressive aspects of his new trade policy, which led to a full recovery in the S&P -- and even a new high. The elevated volatility drove a staggering 49% year-over-year increase in Interactive's DARTs (daily active revenue trades) metric during Q2, which means clients were feverishly adjusting their portfolios amid the chaos. Customer equity also surged 34% to a new quarterly high of $664.6 billion by the end of the quarter. This represents the collective value of all the stocks, securities, and cash customers are holding on Interactive's platform. The new all-time high in the S&P 500 (and other market indexes) boosted the customer equity figure, but the influx of new clients was also a tailwind. Interactive earns commissions based on the value of every stock, cryptocurrency, options, and futures transaction executed by its clients, so a higher customer equity figure can directly translate into more revenue for the company. Interactive's commission revenue is growing rapidly Interactive Brokers generated $1.48 billion in total revenue during the second quarter, which was a 20% increase from the year-ago period. The company's revenue has two main components: Commission revenue, which Interactive earns by processing transactions for its clients. This came in at $516 million during the quarter, which was up 27% year over year. Net interest revenue, which is the interest Interactive earns on its own cash reserves, the cash it's holding for its clients, and on margin loans. This came in at $860 million during the quarter, up 9%. There is a third, much smaller component made up of other service fees and income, which came in at $104 million. Interactive's strong commission revenue growth reflects the surge in both trading volume and customer equity in the second quarter. Net interest revenue grew at a more modest pace because interest rates are currently lower than they were a year ago, after the Federal Reserve's three rate cuts near the end of 2024. Analyst expect the Fed to continue cutting rates in 2025 and 2026, which could eventually lead to declines in Interactive's net interest revenue, unless its margin loan book and cash balances climb significantly to offset them. Interactive stock could be a great long-term buy Interactive Brokers is highly profitable, delivering $0.51 in earnings per share (EPS) during the second quarter, representing growth of 24%. The result carried the company's trailing-12-month EPS to $1.94 (adjusted for its recent 4-for-1 stock split). That places its stock at a price-to-earnings (P/E) ratio of 32, which isn't exactly cheap considering the S&P 500 trades at a P/E ratio of 24.7. But the premium valuation might be justified considering the stock has consistently beaten the index since going public in 2007. As I mentioned at the top, Interactive stock is up by more than 700% since then, which translates to a compound annual return of 12.5%. That's better than the average annual return of 10.1% from the S&P 500 during the same period. It's possible Interactive's valuation becomes a barrier to further upside in the short term, but with quarterly customer growth of at least 30% for the past three consecutive quarters, soaring trading volumes, and record client equity, I think its stock is in a great position to continue beating the market over the long term. Thanks to the recent split, investors of all kinds have an opportunity to own one full share. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. This Unstoppable Stock-Split Stock -- Which Is Up 700% Since Its IPO -- Could Be the Ultimate Long-Term Buy was originally published by The Motley Fool
Globe and Mail
5 days ago
- Business
- Globe and Mail
4 Reasons to Buy Interactive Brokers Stock Like There's No Tomorrow
Key Points Interactive Brokers operates across 160 market centers in 36 countries, with approximately 84% of its customers located outside of the United States. The company's highly automated platform allows it to maintain one of the lowest-cost structures in the brokerage industry. Interactive Brokers boasts impressive profit margins, with a pretax profit margin of 74% in the first quarter, highlighting its operational efficiency. 10 stocks we like better than Interactive Brokers Group › Investing in the stock market is an excellent way to build long-term wealth. If you have a long-term horizon and are willing to take a more aggressive approach, investing in growth stocks can be for you. If you are searching for a hidden gem, look no further than Interactive Brokers (NASDAQ: IBKR). The brokerage platform enables investors to trade a diverse array of products across multiple markets. Tailored for both institutional and savvy individual investors, this platform excels in catering to those who thrive on technology and electronic trading. The company has grown steadily for several years, and continues to show leadership thanks to its low-cost structure and highly automated platform. Here's why you should consider adding this growth stock today. 1. Interactive Brokers has a global presence Interactive Brokers provides an electronic brokerage platform for executing and processing trades for a diverse range of investors, including individuals, hedge funds, mutual funds, and registered investment advisors, among others. It offers a wide array of financial products, including stocks, options, futures, foreign exchange, bonds, mutual funds, exchange-traded funds (ETFs), and event contracts (prediction markets). The company is truly a global one, with a wide reach across 160 market centers in 36 countries, operating across 28 different currencies. Approximately 84% of the company's customers reside outside the U.S., and a majority of its new customers come from international markets, giving it a strong position on a global scale. 2. Its highly automated platform makes it a low-cost leader Interactive Brokers focuses on tech-savvy investors who prioritize high-level analytics, execution speed, efficiency, and low costs. The company's commitment to this is evident from its leadership. A significant portion of its senior managers are software engineers who are dedicated to automating as much of the business as possible. This approach reflects the company's long-standing focus on developing proprietary software to automate broker-dealer functions since its inception in 1977. As a direct result of its extensive automation, IBKR has successfully maintained one of the lowest-cost structures in the industry among broker-dealers. This efficiency translates into tangible benefits for its clients, including low transaction costs, low margin rates, and stellar execution, thanks to its proprietary IB SmartRoutingSM system, which continuously seeks out the best available prices. 3. It has best-in-class profit margins Interactive Brokers' focus on automation not only positions it as a low-cost provider, but also contributes to the company's stellar profit margins. As a result of its low-cost structure, which leads to operational efficiency, Interactive Brokers achieves best-in-class profit margins that surpass many financial companies. Interactive Brokers' pre-tax profit margin was 71% in 2024 and rose to 74% in the first quarter. Strong profit margins are a result of Interactive Brokers' superior cost structure, highlighting its operational efficiency. It also means that the company is efficiently generating a profit, providing it with more capital to invest in its platform or return to shareholders through dividends. 4. Elevated interest rates are a tailwind Interactive Brokers specializes in executing, clearing, and settling trades daily, earning commissions from this activity. It offers customers a commission structure that provides for lower commissions for high-volume customers. It also receives revenue from market makers for payment for order flow through its IBKR LiteSM offering, which offers commission-free trading. While commissions are a primary source of revenue, Interactive Brokers also benefits from the higher interest rate environment. The company primarily earns interest from margin lending, investments in government securities, and from borrowing and lending activities. Meanwhile, it pays customers interest on qualified cash balances. The net of these two, known as net interest income, is the result. In the first quarter, the company generated $770 million in net interest income, representing a 3% increase from the same period last year. This outpaced its commission income in the quarter, which was $514 million. With the Federal Reserve pausing interest rate cuts, due to concerns about inflation from tariffs, Interactive Brokers should continue to benefit from the elevated rates. A solid company with a strong balance sheet Interactive Brokers has plenty of cash on hand, with a balance sheet of $150 billion that is highly liquid (99% liquid according to management). The company also has no long-term debt, and it is growing at an impressive rate. Since the start of 2018, Interactive Brokers has grown its revenue by 491% and net income by 943%. Given its stellar margins, solid growth, and cost advantages, Interactive Brokers appears to be a solid growth stock for investors to consider purchasing today. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Yahoo
5 days ago
- Business
- Yahoo
4 Reasons to Buy Interactive Brokers Stock Like There's No Tomorrow
Key Points Interactive Brokers operates across 160 market centers in 36 countries, with approximately 84% of its customers located outside of the United States. The company's highly automated platform allows it to maintain one of the lowest-cost structures in the brokerage industry. Interactive Brokers boasts impressive profit margins, with a pretax profit margin of 74% in the first quarter, highlighting its operational efficiency. 10 stocks we like better than Interactive Brokers Group › Investing in the stock market is an excellent way to build long-term wealth. If you have a long-term horizon and are willing to take a more aggressive approach, investing in growth stocks can be for you. If you are searching for a hidden gem, look no further than Interactive Brokers (NASDAQ: IBKR). The brokerage platform enables investors to trade a diverse array of products across multiple markets. Tailored for both institutional and savvy individual investors, this platform excels in catering to those who thrive on technology and electronic trading. The company has grown steadily for several years, and continues to show leadership thanks to its low-cost structure and highly automated platform. Here's why you should consider adding this growth stock today. 1. Interactive Brokers has a global presence Interactive Brokers provides an electronic brokerage platform for executing and processing trades for a diverse range of investors, including individuals, hedge funds, mutual funds, and registered investment advisors, among others. It offers a wide array of financial products, including stocks, options, futures, foreign exchange, bonds, mutual funds, exchange-traded funds (ETFs), and event contracts (prediction markets). The company is truly a global one, with a wide reach across 160 market centers in 36 countries, operating across 28 different currencies. Approximately 84% of the company's customers reside outside the U.S., and a majority of its new customers come from international markets, giving it a strong position on a global scale. 2. Its highly automated platform makes it a low-cost leader Interactive Brokers focuses on tech-savvy investors who prioritize high-level analytics, execution speed, efficiency, and low costs. The company's commitment to this is evident from its leadership. A significant portion of its senior managers are software engineers who are dedicated to automating as much of the business as possible. This approach reflects the company's long-standing focus on developing proprietary software to automate broker-dealer functions since its inception in 1977. As a direct result of its extensive automation, IBKR has successfully maintained one of the lowest-cost structures in the industry among broker-dealers. This efficiency translates into tangible benefits for its clients, including low transaction costs, low margin rates, and stellar execution, thanks to its proprietary IB SmartRoutingSM system, which continuously seeks out the best available prices. 3. It has best-in-class profit margins Interactive Brokers' focus on automation not only positions it as a low-cost provider, but also contributes to the company's stellar profit margins. As a result of its low-cost structure, which leads to operational efficiency, Interactive Brokers achieves best-in-class profit margins that surpass many financial companies. Interactive Brokers' pre-tax profit margin was 71% in 2024 and rose to 74% in the first quarter. Strong profit margins are a result of Interactive Brokers' superior cost structure, highlighting its operational efficiency. It also means that the company is efficiently generating a profit, providing it with more capital to invest in its platform or return to shareholders through dividends. 4. Elevated interest rates are a tailwind Interactive Brokers specializes in executing, clearing, and settling trades daily, earning commissions from this activity. It offers customers a commission structure that provides for lower commissions for high-volume customers. It also receives revenue from market makers for payment for order flow through its IBKR LiteSM offering, which offers commission-free trading. While commissions are a primary source of revenue, Interactive Brokers also benefits from the higher interest rate environment. The company primarily earns interest from margin lending, investments in government securities, and from borrowing and lending activities. Meanwhile, it pays customers interest on qualified cash balances. The net of these two, known as net interest income, is the result. In the first quarter, the company generated $770 million in net interest income, representing a 3% increase from the same period last year. This outpaced its commission income in the quarter, which was $514 million. With the Federal Reserve pausing interest rate cuts, due to concerns about inflation from tariffs, Interactive Brokers should continue to benefit from the elevated rates. A solid company with a strong balance sheet Interactive Brokers has plenty of cash on hand, with a balance sheet of $150 billion that is highly liquid (99% liquid according to management). The company also has no long-term debt, and it is growing at an impressive rate. Since the start of 2018, Interactive Brokers has grown its revenue by 491% and net income by 943%. Given its stellar margins, solid growth, and cost advantages, Interactive Brokers appears to be a solid growth stock for investors to consider purchasing today. Should you invest $1,000 in Interactive Brokers Group right now? Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. 4 Reasons to Buy Interactive Brokers Stock Like There's No Tomorrow was originally published by The Motley Fool Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
5 days ago
- Business
- Yahoo
Interactive Brokers (IBKR) Gets 8% Upside from Higher Price Target, Impressive Earnings
We recently published . Interactive Brokers Group, Inc. (NASDAQ:IBKR) is one of this week's top performers. Interactive Brokers jumped by 7.77 percent on Friday to close at $64.05 apiece as investors took heart from two analysts' higher price target for its stock following an impressive earnings performance in the second quarter of the year. In a market note after the earnings results, BofA Securities raised Interactive Brokers Group, Inc. (NASDAQ:IBKR) to $71 from $69 previously and reaffirmed its 'buy' recommendation for its stock. The new figure represents a 10.8-percent upside from its latest closing price. For its part, Citi upgraded its stock price to $65 from $60, but maintained a 'neutral' rating. A skilled senior trader executing an order in a fast paced trading environment. The analyses followed Interactive Brokers Group, Inc.'s (NASDAQ:IBKR) strong earnings during the quarter on the back of an expansion in net interest income, with net income attributable to shareholders ending at $224 million, or 25 percent higher than the $179 million registered in the same period last year. Total revenues increased by 20 percent to $1.48 billion from $1.23 billion year-on-year. While we acknowledge the potential of IBKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
