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Interactive Brokers Falls on Dismal July Metrics Performance
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Shares of Interactive Brokers Group, Inc. (IBKR - Free Report) declined 1.7% following the release of its Jul 2016 brokerage metrics for Electronic Brokerage segment. Metrics witnessed a decline on a year-over-year basis. The segment deals with clearance and settling of trades for both individual and institutional clients on a global basis.
Total client DARTs were 602,000, down 8% from Jul 2015 and 6% from Jun 2016. However, total customer accounts were 360,100, up 15% from the prior-year month and 1% from the preceding month.
Interactive Brokers recorded Cleared Client DARTs of 555,000, down 6% from Jul 2015 as well as Jun 2016. On an annualized basis, Cleared Average DARTs per customer account of 390,000 fell 18% from the year-ago period and 7% from the preceding month.
Interactive Brokers’ total option contracts were 20.2 million, down 29% from the prior-year month and 12% from the prior month. Meanwhile, future contracts declined 18% from Jul 2015 and 22% from Jun 2016 to 9.2 million.
Interactive Brokers also provides data related to period-end statistics for client equity, credit balances and margin loan balances. For Jul 2016, client equity was $76.5 billion, up 16% year over year and 4% from the prior month.
Moreover, Interactive Brokers recorded a client credit balance of $41.2 billion in the reported month, up 19% from Jul 2015 and 6% from Jun 2016. However, the company’s customer margin loan balance of $15.9 billion declined 12% from the prior-year month while it increased 6% from the preceding month.
Nonetheless, we expect Interactive Brokers to see improvement in its monthly metrics, as the company remains well poised to gain from the volatility of the equity markets. If such a market scenario persists, strong trading activities are anticipated to accelerate the company’s top-line growth. However, the intensifying competitive environment can keep the company’s near-term profitability under pressure.
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold).
Notably, monthly performance of other investment brokerage firms including The Charles Schwab Corporation (SCHW - Free Report) , E*TRADE Financial Corporation and TD Ameritrade Holding Corporation (AMTD - Free Report) are expected to be announced in the next couple of weeks.
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Interactive Brokers Falls on Dismal July Metrics Performance
Shares of Interactive Brokers Group, Inc. (IBKR - Free Report) declined 1.7% following the release of its Jul 2016 brokerage metrics for Electronic Brokerage segment. Metrics witnessed a decline on a year-over-year basis. The segment deals with clearance and settling of trades for both individual and institutional clients on a global basis.
Total client DARTs were 602,000, down 8% from Jul 2015 and 6% from Jun 2016. However, total customer accounts were 360,100, up 15% from the prior-year month and 1% from the preceding month.
Interactive Brokers recorded Cleared Client DARTs of 555,000, down 6% from Jul 2015 as well as Jun 2016. On an annualized basis, Cleared Average DARTs per customer account of 390,000 fell 18% from the year-ago period and 7% from the preceding month.
Interactive Brokers’ total option contracts were 20.2 million, down 29% from the prior-year month and 12% from the prior month. Meanwhile, future contracts declined 18% from Jul 2015 and 22% from Jun 2016 to 9.2 million.
Interactive Brokers also provides data related to period-end statistics for client equity, credit balances and margin loan balances. For Jul 2016, client equity was $76.5 billion, up 16% year over year and 4% from the prior month.
Moreover, Interactive Brokers recorded a client credit balance of $41.2 billion in the reported month, up 19% from Jul 2015 and 6% from Jun 2016. However, the company’s customer margin loan balance of $15.9 billion declined 12% from the prior-year month while it increased 6% from the preceding month.
Nonetheless, we expect Interactive Brokers to see improvement in its monthly metrics, as the company remains well poised to gain from the volatility of the equity markets. If such a market scenario persists, strong trading activities are anticipated to accelerate the company’s top-line growth. However, the intensifying competitive environment can keep the company’s near-term profitability under pressure.
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold).
Notably, monthly performance of other investment brokerage firms including The Charles Schwab Corporation (SCHW - Free Report) , E*TRADE Financial Corporation and TD Ameritrade Holding Corporation (AMTD - Free Report) are expected to be announced in the next couple of weeks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>