Piper Sandler Provides Optimistic Forecast for Interactive Brokers Group Stock

Piper Sandler, a well-known investment firm, recently increased its price target for Interactive Brokers Group (NASDAQ:IBKR) from $163.00 to $200.00. This upgrade was highlighted in a research report released on Tuesday, indicating that the firm has assigned an "overweight" rating to the stock. The new price objective suggests a potential upside of approximately 5.22% based on the company's previous closing price.

Market Reactions

This positive revision by Piper Sandler follows a series of favorable assessments from other equity analysts concerning Interactive Brokers. For instance, Goldman Sachs Group raised its target price for the company from $171.00 to $195.00, assigning it a "buy" rating. Similarly, UBS Group increased its price target from $155.00 to $170.00. They also gave a "buy" rating on October 8th. Jefferies Financial Group also added to the encouraging data by lifting their price objective from $152.00 to $165.00, categorizing the stock as a "buy". On December 20th, Keefe, Bruyette & Woods raised their target price from $152.00 to $190.00, maintaining a "market perform" rating for the stock.

Finally, Barclays upgraded its price target for Interactive Brokers from $165.00 to $214.00, also rating it as "overweight". Currently, one research analyst holds a "hold" rating, while seven others classify the company’s shares as a buy. MarketBeat.com data indicates a consensus rating of "Moderate Buy" for the stock, with an average target price set at $177.63.

Current Stock Performance

On Tuesday, shares of Interactive Brokers opened at $190.07. The stock has shown significant volatility over the past year, with a low of $83.86 and a high of $193.42. It currently boasts a market capitalization of $80.31 billion, alongside a PE ratio of 29.02 and a P/E/G ratio of 1.41, along with a beta of 0.87.

Interactive Brokers Group last released its earnings results on October 15th, where it reported earnings per share (EPS) of $1.75 for the quarter. This figure was slightly below the consensus estimate of $1.78, indicating a missed target by $0.03. The company's net margin stands at 7.89%, with a return on equity of 4.83%. For the quarter, the revenue hit $2.45 billion, exceeding analyst expectations of $1.32 billion. In the same period last year, the company reported an EPS of $1.55. Analysts predict that the earnings per share for Interactive Brokers Group will reach 6.82 for the current fiscal year.

Institutional Investor Actions

Recent trading activity among institutional investors shows a growing interest in Interactive Brokers Group. Versant Capital Management Inc significantly raised its stake by 66.4% in the fourth quarter, now owning 178 shares valued at approximately $31,000 after adding 71 shares. Fairfield Financial Advisors also acquired a new position in the second quarter worth around $32,000.

Additionally, UMB Bank n.a. expanded its investment in Interactive Brokers by 350% during the third quarter, owning now 288 shares worth $40,000 after purchasing an additional 224 shares. Smithfield Trust Co increased its stake by 80.6% during the same period and currently owns 345 shares valued at $48,000. Lastly, Darwin Wealth Management LLC bought a new position valued at $49,000 in the third quarter. Overall, institutional investors and hedge funds hold about 23.80% of the stocks.

Understanding Interactive Brokers

Interactive Brokers Group, Inc operates globally as an automated electronic broker. The company provides various trading services including the execution, clearance, and settlement of trades across several financial instruments including stocks, options, futures, foreign exchanges, bonds, mutual funds, exchange-traded funds (ETFs), precious metals, and cryptocurrencies.

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