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Interactive Brokers Faces Growth Concerns: Time to Sell? (revised)
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On Apr 5, we have issued an updated research report on Interactive Brokers Group, Inc. (IBKR - Free Report) . Dismal performance of the Market Making segment and intensifying competitive environment remain the company’s near-term concerns.
Notably, over the last 30 days, the Zacks Consensus Estimate for the stock fell nearly 1% to $1.47 for 2017. Also, for 2018, estimates fell 1.8% to $1.69 per share over the same time frame. Thus, the stock carries a Zacks Rank #4 (Sell).
Interactive Brokers’ shares lost 6.6% in the last six months, as against 24.3% gain of the Zacks categorized Investment Brokers industry.
On March 6, Interactive Brokers announced that it was discontinuing its options market making activities, which represent most of the results reported for its market making segment. The company has not announced any change to its dividend policy.
Further, intensifying market rivalry and increasing volatility have been hampering the company’s profitability. With market volatility currently at historic lows, fewer trades overall have affected company revenues.
However, a low level of compensation expenses, development of proprietary software and increasing emerging market customers should continue contributing to Interactive Brokers’ growth.
Stocks Worth Mentioning
Other stocks in the same space include E*Trade , TDAmeritrade (AMTD - Free Report) and Charles Schwab (SCHW - Free Report) . Whereas Schwab currently has a Zacks Rank #3 (Hold), E*Trade and TDAmeritrade are currently Zacks Rank #4 (Sell) stocks.
(We are reissuing this article to correct several mistakes. The original article, issued April 6, 2017, should no longer be relied upon.)
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Interactive Brokers Faces Growth Concerns: Time to Sell? (revised)
On Apr 5, we have issued an updated research report on Interactive Brokers Group, Inc. (IBKR - Free Report) . Dismal performance of the Market Making segment and intensifying competitive environment remain the company’s near-term concerns.
Notably, over the last 30 days, the Zacks Consensus Estimate for the stock fell nearly 1% to $1.47 for 2017. Also, for 2018, estimates fell 1.8% to $1.69 per share over the same time frame. Thus, the stock carries a Zacks Rank #4 (Sell).
Interactive Brokers’ shares lost 6.6% in the last six months, as against 24.3% gain of the Zacks categorized Investment Brokers industry.
On March 6, Interactive Brokers announced that it was discontinuing its options market making activities, which represent most of the results reported for its market making segment. The company has not announced any change to its dividend policy.
Further, intensifying market rivalry and increasing volatility have been hampering the company’s profitability. With market volatility currently at historic lows, fewer trades overall have affected company revenues.
However, a low level of compensation expenses, development of proprietary software and increasing emerging market customers should continue contributing to Interactive Brokers’ growth.
Stocks Worth Mentioning
Other stocks in the same space include E*Trade , TDAmeritrade (AMTD - Free Report) and Charles Schwab (SCHW - Free Report) . Whereas Schwab currently has a Zacks Rank #3 (Hold), E*Trade and TDAmeritrade are currently Zacks Rank #4 (Sell) stocks.
You can see the complete list of today’s Zacks #1 Rank stocks here.
(We are reissuing this article to correct several mistakes. The original article, issued April 6, 2017, should no longer be relied upon.)
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>