Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ: IBKR), a global electronic brokerage firm, has reported an increase in its trading activity for July, with significant growth in both client equity and daily trades.
The company's latest monthly performance metrics show a 38% year-over-year rise in Daily Average Revenue Trades (DARTs), reaching 2.756 million. This figure also represents a 12% increase compared to the previous month.
Client equity ended at $509.5 billion, marking a 32% increase from the same period last year and a 2% climb from June. Additionally, ending client margin loan balances grew to $56.1 billion, up 30% from the prior year and 2% from the preceding month.
Interactive Brokers also reported an 11% year-over-year increase in ending client credit balances, totaling $109.2 billion, which includes $4.2 billion in insured bank deposit sweeps. The number of client accounts reached 3.00 million, a 29% surge from the previous year and a 2% hike from June.
The brokerage noted an annualized average of 206 cleared DARTs per client account and an average commission per cleared Commissionable Order of $2.78, inclusive of exchange, clearing, and regulatory fees. The average commission varied across products, with stocks, equity options, and futures at $1.86, $4.02, and $4.21 per order, respectively.
In terms of trade execution costs, Interactive Brokers quantified the all-in cost for IBKR PRO clients trading U.S. Reg.-NMS stocks in July at approximately 3.6 basis points of trade money, based on a daily VWAP benchmark. This reflects a net cost of 3.3 basis points for the rolling twelve months.
The value of the company's GLOBAL, a basket of 10 major currencies used for its net worth, increased by 0.38% in July.
Interactive Brokers reported its commissions reached a notable $406 million, while net interest income hit a new quarterly high of $792 million. The company also added 178,000 new accounts, and client equity rose by 36% from the previous year, reaching $497 billion.
InvestingPro Insights
Interactive Brokers Group, Inc. (NASDAQ:IBKR) has demonstrated a robust performance, as reflected in their latest trading activity report. To add to the understanding of the company's financial health, InvestingPro data and tips offer a deeper dive into the firm's valuation and growth prospects.
InvestingPro data underscores the company's solid financial metrics with a market capitalization of $49.94 billion and a healthy price-to-earnings (P/E) ratio of 18.6. This valuation is supported by a strong revenue growth of 22.02% over the last twelve months as of Q2 2024, indicating a positive trend in the company's earnings capacity.
One InvestingPro Tip highlights that Interactive Brokers is trading at a low P/E ratio relative to its near-term earnings growth, suggesting that the stock may be undervalued given its growth potential. Additionally, the firm has been able to maintain dividend payments for 15 consecutive years, which could be appealing to income-focused investors.
With an impressive six-month price total return of 31.63%, Interactive Brokers has also shown a significant price uptick, reflecting investor confidence in the company's trajectory. For those seeking more detailed analysis, there are several additional InvestingPro Tips available at https://www.investing.com/pro/IBKR, which can provide further insights into the company's performance and investment potential.
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