GREENWICH, Conn. - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ:IBKR), a global electronic brokerage firm, has disclosed its monthly performance metrics for April, revealing significant year-over-year growth in several key areas, despite slight declines from the previous month.
The brokerage reported 2.339 million Daily Average Revenue Trades (DARTs) for April, marking a 33% increase compared to the same period last year, although this was a 3% decrease from March. Client equity saw a substantial rise, reaching $457.8 billion, 34% higher than the prior year but experiencing a slight 2% drop from March figures.
Interactive Brokers also observed a 28% year-over-year increase in ending client margin loan balances, totaling $50.7 billion, which is marginally down by 1% compared to March. Conversely, ending client credit balances, including $4.0 billion in insured bank deposit sweeps, were up by 7% from the previous year, amounting to $105.8 billion, and showing a modest 1% increase from the prior month.
The number of client accounts continued to swell, reaching 2.81 million, which represents a 26% surge over the last year and a 2% rise from March. The brokerage also noted an average of 188 annualized cleared DARTs per client account.
Commission fees for cleared Commissionable Orders averaged at $3.00, with the report providing a detailed breakdown of average commissions per order size for stocks, equity options, and futures. For instance, stock trades averaged a commission of $1.90 for 964 shares, while equity options and futures commanded higher fees.
In terms of trading costs, the report highlighted that the all-in cost of trade execution for IBKR PRO clients was approximately 4.5 basis points of trade money in April, based on a daily Volume-Weighted Average Price (VWAP) benchmark.
Interactive Brokers employs a currency diversification strategy, and the value of their GLOBAL, a basket of 10 major currencies, decreased by 0.33% in April. The company's comprehensive income is influenced by changes in the U.S. dollar value of the GLOBAL.
The data presented in the press release statement shows Interactive Brokers' continued growth in the brokerage sector, with an expanding client base and increased client equity. The company's performance metrics provide insight into trading activity and costs associated with its services.
InvestingPro Insights
Interactive Brokers Group, Inc. (NASDAQ:IBKR) has demonstrated a robust performance and financial health over the last twelve months as of Q1 2024, which is reflected in several key metrics provided by InvestingPro. With a market capitalization of $49.13 billion, the company has shown an impressive revenue growth of 28.41% over the last twelve months. This growth is paired with a strong gross profit margin of 90.5%, indicating the company's efficiency in maintaining profitability.
InvestingPro Tips for Interactive Brokers suggest a positive outlook for the company. Analysts have revised their earnings upwards for the upcoming period, which is a strong indicator of potential future performance. Moreover, the company is trading at a low P/E ratio of 19.72 relative to near-term earnings growth, suggesting that the stock may be undervalued compared to its growth prospects. This is particularly compelling for investors looking for growth at a reasonable price.
Furthermore, Interactive Brokers has maintained dividend payments for 15 consecutive years, with a notable dividend growth of 150% over the last twelve months. This consistent dividend history, coupled with a dividend yield of 0.87%, may appeal to income-seeking investors. The robust returns over the last three months, with a price total return of 26.8%, and the strong return over the last five years, underscore the company's ability to generate value for shareholders over both short and long-term horizons.
For those interested in exploring additional insights and metrics on Interactive Brokers, InvestingPro offers more tips that can further guide investment decisions. With a total of 11 InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial landscape. To access these insights, visit: https://www.investing.com/pro/IBKR. Additionally, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.