GREENWICH, Conn. - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ:IBKR), a global electronic brokerage firm, has reported significant growth in its trading metrics for May 2024, with notable increases in client equity, margin loans, and revenue trades.
The company's Daily Average Revenue Trades (DARTs) reached 2.36 million, marking a 27% rise from the same period last year and a 1% increase from the previous month. Client equity showed a robust increase, ending at $486.3 billion, which is 41% higher than the previous year and 6% more than the preceding month. Additionally, client margin loan balances grew by 33% year-over-year to $53.1 billion and were 5% higher than the previous month.
Interactive Brokers also reported a 27% year-over-year increase in client accounts, totaling 2.86 million, with a 2% rise from the prior month. The brokerage highlighted an annualized average of 186 cleared DARTs per client account. Average commissions per cleared Commissionable Order stood at $3.01, inclusive of exchange, clearing, and regulatory fees.
The firm provided a breakdown of average commissions per order for key products, with stocks, equity options, and futures at $2.12, $4.04, and $4.61 respectively. The average U.S. Reg-NMS stock trade in May was valued at $21,985.
For IBKR PRO clients, the total cost of executing and clearing U.S. Reg.-NMS stocks through Interactive Brokers was approximately 3.3 basis points of trade money, using a daily VWAP benchmark. This figure aligns with the rolling twelve months' average cost for an IBKR PRO client's U.S. stock trade.
Interactive Brokers Group has been recognized for its technology-driven platform, which provides automated trade execution and custody services across a wide range of markets and currencies. The company's focus on automated and low-cost trading options has positioned it as a competitive player in the brokerage industry.
This article is based on a press release statement from Interactive Brokers Group, Inc. The company's full financial details and historical performance metrics can be found on its investor relations website.
InvestingPro Insights
Interactive Brokers Group, Inc. (NASDAQ:IBKR) has demonstrated impressive financial health and market performance as evidenced by recent data. With a market capitalization of $13.4 billion and a solid revenue growth of 28.41% over the last twelve months as of Q1 2024, the company shows no signs of slowing down in its industry dominance.
Investors may take particular interest in the company's Price to Earnings (P/E) ratio, which stands at 21.12, suggesting a reasonable valuation when paired with its near-term earnings growth. This aligns with one of the InvestingPro Tips, highlighting that IBKR is trading at a low P/E ratio relative to near-term earnings growth. Additionally, the firm's dedication to shareholder returns is reflected in its consistent dividend payments for the past 15 consecutive years, a fact that resonates with income-focused investors.
With a Price / Book ratio reported at 14.13, some market participants might view the stock as trading at a premium. Nevertheless, the company's robust gross profit margin of 90.5% over the last twelve months as of Q1 2024 showcases its efficiency in generating revenue over its direct costs. Furthermore, a noteworthy six-month price total return of 61.36% signifies strong market confidence in the stock, which may be further bolstered by the fact that there are additional InvestingPro Tips available, offering deeper insights into the company's performance and potential. For those interested in gaining a more comprehensive understanding of Interactive Brokers' financial landscape, they can access these tips and benefit from an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Interactive Brokers Group continues to advance in the competitive electronic brokerage space, these metrics and insights provide a snapshot of its financial prowess and market sentiment. For a more detailed analysis, investors can visit https://www.investing.com/pro/IBKR and explore a range of InvestingPro Tips that can further inform their investment decisions.
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