Interactive Brokers Group Inc. (NASDAQ:IBKR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “Interactive Brokers’ third-quarter 2016 earnings lagged the Zacks Consensus Estimate primarily due to lower revenues and increased expenses. Also, the company’s dependence on the Market Making segment for dividend payments remains a matter of concern, given the dismal performance of the same over the last several quarters. Moreover, the intensifying competitive environment is likely to keep the company’s near-term profitability under pressure. Further, increased dependence on IBG LLC is also an area of concern because if the latter fails to provide sufficient funds, Interactive Brokers’ financial condition may suffer significantly. Nonetheless, a low level of compensation expense, development of proprietary software and increasing emerging market customers continue contributing to the company’s growth.”
Interactive Brokers Group (NASDAQ:IBKR) opened at 33.34 on Thursday. The firm has a 50-day moving average of $35.46 and a 200 day moving average of $36.48. The company has a market capitalization of $2.24 billion, a price-to-earnings ratio of 22.85 and a beta of 0.93. Interactive Brokers Group has a one year low of $29.50 and a one year high of $44.85.
Interactive Brokers Group (NASDAQ:IBKR) last released its quarterly earnings data on Tuesday, October 18th. The company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by $0.02. The company had revenue of $345 million for the quarter, compared to the consensus estimate of $330.70 million. Interactive Brokers Group had a net margin of 6.26% and a return on equity of 1.72%. The company’s quarterly revenue was down 3.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.35 EPS. Equities research analysts predict that Interactive Brokers Group will post $1.60 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 14th. Investors of record on Thursday, December 1st will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 1.20%. The ex-dividend date is Tuesday, November 29th. Interactive Brokers Group’s dividend payout ratio is presently 27.40%.
Large investors have recently made changes to their positions in the company. Bank of Montreal Can boosted its stake in shares of Interactive Brokers Group by 31.7% in the third quarter. Bank of Montreal Can now owns 3,452 shares of the company’s stock valued at $121,000 after buying an additional 830 shares in the last quarter. Creative Planning boosted its stake in shares of Interactive Brokers Group by 106.3% in the third quarter. Creative Planning now owns 3,587 shares of the company’s stock valued at $127,000 after buying an additional 1,848 shares in the last quarter. Societe Generale acquired a new stake in shares of Interactive Brokers Group during the second quarter valued at $135,000. SG Americas Securities LLC acquired a new stake in shares of Interactive Brokers Group during the second quarter valued at $135,000. Finally, Tower Research Capital LLC TRC boosted its stake in shares of Interactive Brokers Group by 2,477.5% in the second quarter. Tower Research Capital LLC TRC now owns 4,588 shares of the company’s stock valued at $162,000 after buying an additional 4,410 shares in the last quarter. Institutional investors own 84.67% of the company’s stock.
About Interactive Brokers Group
Interactive Brokers Group, Inc (IBG, Inc) is a holding company. The Company is an automated global electronic broker and market maker specializing in routing orders, and executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on over 100 electronic exchanges and trading venues around the world.