Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Interactive Brokers Group ( IBKR) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Interactive Brokers Group as such a stock due to the following factors:

  • IBKR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.0 million.
  • IBKR traded 55,267 shares today in the pre-market hours as of 8:12 AM, representing 10.6% of its average daily volume.

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More details on IBKR:

Interactive Brokers Group, Inc. operates as an automated electronic broker and market maker. The stock currently has a dividend yield of 1.4%. IBKR has a PE ratio of 40.9. Currently there are 2 analysts that rate Interactive Brokers Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Interactive Brokers Group has been 466,800 shares per day over the past 30 days. Interactive Brokers Group has a market cap of $1.7 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.01 and a short float of 1.7% with 1.54 days to cover. Shares are down 0.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Interactive Brokers Group as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:
  • Net operating cash flow has increased to $242.99 million or 17.89% when compared to the same quarter last year. In addition, INTERACTIVE BROKERS GROUP has also vastly surpassed the industry average cash flow growth rate of -196.88%.
  • Compared to its closing price of one year ago, IBKR's share price has jumped by 27.39%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The revenue fell significantly faster than the industry average of 1.6%. Since the same quarter one year prior, revenues fell by 42.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 45.50% is the gross profit margin for INTERACTIVE BROKERS GROUP which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, IBKR's net profit margin of 1.63% is significantly lower than the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Capital Markets industry and the overall market, INTERACTIVE BROKERS GROUP's return on equity is below that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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