Interactive Brokers (IBKR, Financial) is witnessing notable bearish sentiment in the options market, with put contracts significantly outnumbering calls. A total of 1,656 put options have been traded, which is 70% higher than usual activity. The most active contracts are the May 2025 expiration with strike prices at $165 and $140, collectively accounting for approximately 1,100 contracts. The Put/Call Ratio stands at 2.42, indicating a predominance of bearish positions. Meanwhile, the At-The-Money implied volatility has risen by over a point during the day. Investors are keeping a close watch as the company's next earnings report is anticipated on July 15th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Interactive Brokers Group Inc (IBKR, Financial) is $197.89 with a high estimate of $243.00 and a low estimate of $175.00. The average target implies an upside of 16.55% from the current price of $169.80. More detailed estimate data can be found on the Interactive Brokers Group Inc (IBKR) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Interactive Brokers Group Inc's (IBKR, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Interactive Brokers Group Inc (IBKR, Financial) in one year is $101.67, suggesting a downside of 40.12% from the current price of $169.795. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Interactive Brokers Group Inc (IBKR) Summary page.
IBKR Key Business Developments
Release Date: April 15, 2025
- Revenue: Record net revenues and pretax income, with commissions rising 36% year-over-year to over $0.5 billion.
- Net Interest Income: Increased 3% year-over-year to $770 million.
- Client Credit Balances: Rose 19% to a record $125.2 billion.
- Client Equity: Increased 23% versus 2024 to $573.5 billion.
- Adjusted Pretax Profit Margin: Industry-leading 74%.
- New Accounts: Added 279,000 new accounts, a 32% total account growth.
- Trading Volumes: Options contract volumes up 25%, futures volumes up 16%, and stock share volumes up 47%.
- Dividend: Increased to $0.32 per quarter.
- Total Assets: Ended the quarter 19% higher at $158 billion.
- Firm Equity: Increased 19% to $17.5 billion.
- Customer DARTs: 3.5 million trades per day, up 50% year-over-year.
- Compensation and Benefits Expense: $154 million, with a 3% staff increase over the prior year.
- G&A Expenses: $62 million, mainly due to advertising expansion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Interactive Brokers Group Inc (IBKR, Financial) achieved record net revenues and pretax income in the first quarter of 2025.
- The company saw a 32% growth in total accounts, with significant international expansion.
- Options contract volumes increased by 25%, futures by 16%, and stock share volumes by 47%, all reaching quarterly records.
- Client credit balances rose 19% to a record $125.2 billion, and client equity increased by 23% year-over-year.
- The company increased its quarterly dividend to $0.32 and announced a stock split to enhance liquidity and affordability.
Negative Points
- The S&P 500 ended the quarter down 5%, impacting market conditions.
- There was a 12% decrease in margin loans due to market volatility and client deleveraging.
- Net interest income growth was limited to 3% due to lower benchmark interest rates.
- The company faces challenges in finding suitable M&A opportunities at attractive prices.
- Despite a significant increase in crypto offerings, the growth in cryptocurrency trading on the platform has been slower than expected.
