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Interactive Brokers May DARTs Rise Y/Y on Coronavirus Mayhem

Zacks Equity Research

Interactive Brokers Group IBKR recently released the Electronic Brokerage segment’s performance metrics for May 2020. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported a substantial surge in Daily Average Revenue Trades (DARTs) on a year-over-year basis. This was attributed to a rise in trading activities owing to concerns over coronavirus.

Total client DARTs were 1,720,000, surging 84% from May 2019 but declining 4% from April 2020. On an annualized basis, the company recorded Cleared Average DARTs per customer accounts of 448,000. This reflects a jump of 41% year over year but 10% sequential decline.

Total customer accounts jumped 31% from the prior-year month and 4% from April 2020 to 838,700. Net new accounts were 33,100, increasing 319% from May 2019 but falling 28% from April 2020.

Interactive Brokers’ total options contracts were 43.4 million, rising 32% from May 2019 but decreasing 1% year over year. Futures contracts grew 2% on a year-over-year basis but declined 10% from the year-ago month to 13 million.

At the end of May, client equity was $190.6 billion, up 32% year over year and 6% sequentially. Also, Interactive Brokers recorded client credit balance of $70 billion, up 32% from May 2019 and 1% on a sequential basis. The company’s customer margin loan balance of $23.3 billion declined 10% from May 2019 but increased 13% from the prior month.

Shares of Interactive Brokers have lost 8.4% so far this year compared with 16.1% fall 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 discount brokers, LPL Financial Holdings Inc. LPLA, Charles Schwab SCHW and E*TRADE Financial ETFC are likely to report monthly performance metrics in the coming days.

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Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report
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