Interactive Brokers Group (IBKR) Hits New Lifetime High

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.

Trade-Ideas LLC identified Interactive Brokers Group ( IBKR) as a new lifetime high 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 $10.0 million.
  • IBKR has traded 92,235 shares today.
  • IBKR is trading at a new lifetime high.

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More details on IBKR:

Interactive Brokers Group, Inc. operates as an automated electronic broker and market maker in the United States and internationally. The stock currently has a dividend yield of 1.1%. IBKR has a PE ratio of 17. Currently there is 1 analyst that rates Interactive Brokers Group a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Interactive Brokers Group has been 397,500 shares per day over the past 30 days. Interactive Brokers Group has a market cap of $2.1 billion and is part of the financial sector and financial services industry. The stock has a beta of 0.68 and a short float of 2.8% with 5.00 days to cover. Shares are up 24% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Interactive Brokers Group as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, IBKR's share price has jumped by 56.96%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • Net operating cash flow has increased to -$220.00 million or 15.07% when compared to the same quarter last year. Despite an increase in cash flow of 15.07%, INTERACTIVE BROKERS GROUP is still growing at a significantly lower rate than the industry average of 190.26%.
  • 37.43% 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 -6.95% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Capital Markets industry. The net income has significantly decreased by 168.1% when compared to the same quarter one year ago, falling from $19.09 million to -$13.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Capital Markets industry and the overall market, INTERACTIVE BROKERS GROUP's return on equity significantly trails that of both the industry average and the S&P 500.

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