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Interactive Brokers Up 2% as August DARTs Rise Sequentially

Zacks Equity Research

Shares of Interactive Brokers Group, Inc. IBKR have rallied almost 2% since the release of its Electronic Brokerage segment’s performance metrics for August 2019. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a sequential increase in Daily Average Revenue Trades (DARTs).

Total client DARTs were 930,000, up 16% from July 2019 and 26% from August 2018. Total customer accounts grew 1% from the prior month and 17% from the prior-year month to 659,500.

Net new accounts were 7,400, growing 1% sequentially but down 29% year over year. On an annualized basis, the company recorded Cleared Average DARTs per customer accounts of 325,000. This reflects a rise of 18% from July 2019 and 8% from August 2018.

Interactive Brokers’ total options contracts were 33.9 million, up 19% from July 2019 and 13% from August 2018. Also, futures contracts surged 39% from the prior month and 40% from the year-ago month to 14.2 million.

At the end of August, client equity was $154.6 billion, down 1% sequentially but up 10% year over year. Further, Interactive Brokers recorded client credit balance of $54.7 billion, down 2% sequentially but growing 10% from August 2018. The company’s customer margin loan balance of $25.6 billion decreased 3% from July 2019 and 12% from the prior-year month.

Shares of Interactive Brokers have lost 11.8% so far this year against 6.2% rise of the industry it belongs to.

The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other investment brokers, LPL Financial Holdings Inc. LPLA, Charles Schwab SCHW and E*TRADE Financial ETFC are likely to report their monthly metrics information soon.

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