IBD Stock Analysis
- Handle has 81.56 buy point in an 11-month cup base.
Industry Group Ranking
Cup with Handle
* Not real-time data. All data shown was captured at
2:02PM EST on
The Greenwich, Conn.-based online brokerage offers trading in stocks, bonds, futures, currencies and options in over 33 countries. The financial services company’s rivals include Robinhood (HOOD), Charles Schwab (SCHW) and Morgan Stanley (MS).
Billionaire Thomas Peterffy founded Interactive Brokers in 1993. He still chairs the company and owns a majority of the Interactive Brokers stock.
On Oct. 18, Interactive Brokers reported mixed third-quarter earnings, topping earnings estimates but missing on revenue. The financial services company’s EPS recovered from two slack quarters, gaining 38% to $1.08. Revenue increased 22% to $790 million in Q3. Net interest income catapulted 73% to $473 million on higher interest rates. Meanwhile, commission revenue edged up 3% to $320 million on higher volumes of customers trading futures, and higher options commissions per contract.
Interactive Brokers has benefited from rising interest rates this year, as the Federal Reserve hikes its target rate to combat inflation. Like many financial outfits, Interactive Brokers stands to benefit from a higher interest rate environment.
Last week, Interactive Brokers reported its client daily average revenue trades (DARTS) dropped by 30% in November compared to last year. Its client equity in November was $317.3 billion, 15% lower than a year earlier but 7% higher than the end of October.
Analysts expect the company to announce Q4 earnings in mid-January. Wall Street forecasts earnings up 42% to $1.18 per share, according to FactSet. Revenue is predicted to balloon 54% to $928 million.
Interactive Brokers Stock
Interactive Brokers stock fell 1.2% to 76.74 in Wednesday’s market trading. Shares have formed a cup-with-handle pattern with an official 81.56 buy point, according to MarketSmith analysis. The base extends back to the end of 2021 with the handle beginning on Nov. 4, 2022.
IBKR shares on Wednesday dropped below support at their 21-day moving average. Interactive Brokers stock has looped through several consolidations since May 2018. Over the last 10 years, the stock has surged around 545%.
The brokerage stock surged on strong volume for two days after the company released its third-quarter earnings. IBKR shares are up 15% since the beginning of October. Interactive Brokers stock is on the IBD 50 list.
Fellow banking and brokerage stock Charles Schwab is also near its 81.18 buy point, right at its 21-day line. SCHW shares were down 0.1% to 80.50 Wednesday.
Interactive Brokers stock sits third in the Finance-Invest Banks/Brokers industry group. IBKR shares have a Composite Rating of 98. Its Relative Strength Rating is 94, an exclusive IBD Stock Checkup gauge for share price movement, with a 1 to 99 score. The EPS Rating is 91.
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