Investing in Interactive Brokers Group Stock presents a unique opportunity to embrace volatility and unleash potential growth. With a mean deviation of
1.29 and a standard deviation of
1.73, the stock exhibits a level of volatility that, while potentially intimidating to some, can be a boon to investors looking for opportunities in the capital markets industry. The stock's potential upside of
2.32 showcases the potential for significant returns. Moreover, the company's robust daily volume of
2.4M shares and an open price of $83.8, which often hovers around the day's typical price of $85.83, suggests a strong market presence. However, investors should be aware of the maximum drawdown of
10.71 and the expected shortfall, which indicates a potential loss of $1.39.
More Analysis
Macroaxis provides an investment recommendation for Interactive Brokers Group, which complements and cross-verifies the current
analyst consensus on Interactive Brokers. Our trade recommendation engine determines the company's growth potential exclusively from the perspective of an investor's current risk tolerance and investment horizon. The company has a Profit Margin (PM) of
0.13 %, which means that even a very small decline in its revenue will erase profits, resulting in a net loss. This is significantly below average. Similarly, it has an Operating Margin (OM) of
0.69 %, which suggests that for every 100 dollars of sales, it generates a net operating income of $0.69.
The successful prediction of Interactive Brokers
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Interactive Brokers Group, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Interactive Brokers based on Interactive Brokers hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Interactive Brokers's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Interactive Brokers's related companies.
Use Technical Analysis to project Interactive expected Price
Interactive Brokers technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Interactive Brokers technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Interactive Brokers trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Interactive Brokers Gross Profit
Interactive Brokers Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Interactive Brokers previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Interactive Brokers Gross Profit growth over the last 10 years. Please check Interactive Brokers'
gross profit and other
fundamental indicators for more details.
A Deeper Perspective On Interactive Brokers
The latest indifference towards the small price fluctuations of Interactive Brokers may raise some interest from retail investors. The stock closed today at a share price of
86.27 on
2,416,282 in trading volume. The company directors and management did not add any value to Interactive Brokers Group investors in
June. However, most investors can still diversify their portfolios with Interactive Brokers to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.77. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2020 | 2021 | 2022 | 2023 (projected) |
Cost of Revenue | 293 M | 236 M | 324 M | 317.63 M | Consolidated Income | 1.18 B | 1.64 B | 1.84 B | 1.5 B |
Cost of Revenue Breakdown
Interactive Brokers Cost of Revenue yearly trend continues to be relatively stable with very little volatility. Cost of Revenue is likely to drop to about 317.6
M. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. Interactive Brokers Cost of Revenue is relatively stable at the moment as compared to the past year. Interactive Brokers reported last year Cost of Revenue of 324 Million
| 2016 | 244 Million |
| 2017 | 241 Million |
| 2018 | 269 Million |
| 2019 | 251 Million |
| 2020 | 293 Million |
| 2021 | 236 Million |
| 2022 | 324 Million |
| 2023 | 317.63 Million |
Interactive Brokers Group (IBKR) is a force to be reckoned with in the Capital Markets industry. With a market capitalization of
$34.93B and a robust net income of
$1.84B, the company's financial stability is evident. The firm's solid
financial performance is reflected in its positive EBITDA of $620M and cash flow from operations of $3.97B. The Price to Earnings ratio stands at 23.01X, suggesting that investors are willing to pay a high price for the company's earnings. The company's stock has a Beta of 0.8, indicating lower volatility compared to the market as a whole. However, with a Kurtosis of 3.53, the company's returns have exhibited excess kurtosis, indicating a potential for extreme outcomes. This suggests that while the stock is generally less volatile, it may still present significant opportunities for investors willing to embrace volatility. Interactive Brokers Group has a strong balance sheet, with total assets of $115.14B and current assets of $44.33B. The company's current ratio stands at 1.10X, indicating its ability to cover its short-term liabilities. However, the firm also has a substantial total debt of $8.96B, which investors should keep in mind. With a five-year return of 0.70% and a return on equity of 0.19, Interactive Brokers Group has demonstrated its ability to generate profits for its investors. The company's shares are largely held by institutions, with 90.00% of shares owned by
institutional investors. suggesting confidence in the firm's long-term prospects. Embrace the volatility and consider the potential opportunities with Interactive Brokers Group stock investment.
Can Interactive Brokers build up on the latest spike?
Interactive Brokers Group, Inc. (IBKR) has recently experienced a significant uptick in its semi-variance, rising over 2.31. This statistical measure indicates the potential for extreme negative shifts in the company's stock price. The increase implies a higher degree of volatility and potential risk, but also the possibility of significant returns. Given this development, investors should evaluate whether Interactive Brokers can leverage this spike. While the heightened semi-variance may signal a more volatile market environment, it could also offer the company an opportunity to yield substantial gains if it can effectively manage the associated risks. Interactive Brokers Group exhibits relatively low volatility, with a skewness of 0.78 and kurtosis of 3.53. However, we recommend that all investors conduct independent investigations into Interactive Brokers Group to ensure that all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Interactive Brokers' stock risk against market volatility during both bullish and bearish trends. The elevated level of volatility that accompanies bear markets can directly affect
Interactive Brokers' stock price, causing stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.
Our Final Takeaway
When is the right time to buy or sell Interactive Brokers Group? Buying stocks such as Interactive Brokers isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some retail investors may not share our view, we believe it may be a good time to increase your existing holdings in Interactive as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Interactive Brokers.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Interactive Brokers Group. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]
