Yahoo Finance Here's How Much a $1000 Investment in Interactive Brokers Group, Inc. Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Interactive Brokers Group, Inc. (IBKR) ten years ago? It may not have been easy to hold on to IBKR for all that time, but if you did, how much would your investment be worth today?
Interactive Brokers Group, Inc.'s Business In-Depth
With that in mind, let's take a look at Interactive Brokers Group, Inc.'s main business drivers.
Incorporated in 1977 and headquartered in Greenwich, CT, Interactive Brokers Group Inc. operates as an automated global electronic market maker and broker. The company specializes in routing orders, besides executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 150 electronic exchanges and market centers worldwide.
In the United States, Interactive Brokers conducts its business primarily from Greenwich and Chicago. Across the globe, it conducts business through offices in Canada, the U.K., Ireland, Luxembourg, Switzerland, Hungary, India, China (Hong Kong and Shanghai), Japan, Singapore, and Australia.
Since 2017, the company has been working continuously to wind down its Market Making segment and focus more on the Electronic Brokerage segment. In April 2020, Interactive Brokers announced that its market making activities were almost insignificant and hence decided not to report its operations through two separate segments.
Prior to its IPO in 2007, Interactive Brokers conducted business through a limited liability company (LLC) structure. In connection with the IPO, the company purchased 10.0% of the membership interest in IBG LLC. As of Dec 31, 2022, Interactive Brokers’ primary assets were its ownership of 24.5% of the membership interests in IBG LLC. The remaining 75.5% of the membership interests were held by IBG Holdings LLC.
As of Dec 31, 2022, Interactive Brokers had $115.1 billion in total assets, $3.4 billion in cash and cash equivalents, and $11.6 billion in total equity.
As of the same date, Interactive Brokers’ total customer accounts were 2.09 million and total customer Daily Average Revenue Trades (DARTs) was 1.89 million.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Interactive Brokers Group, Inc. a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $5,677.51, or a 467.75% gain, as of April 14, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 160.96% and the price of gold increased 25.60% over the same time frame in comparison.
Analysts are forecasting more upside for IBKR too.
Shares of Interactive Brokers have outperformed the industry over the past year. The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Its fourth-quarter 2022 results were aided by higher revenues. The company’s continued efforts to develop proprietary software, low compensation expenses relative to net revenues, an increase in emerging market customers and higher interest rates will likely keep supporting financials. The buyout of the retail unit of Folio Investments will strengthen its position in the online brokerage space. Given a solid liquidity position, it is expected to sustain its dividend payments. However, elevated expenses (owing to technology upgrades and investments in franchise) are expected to hurt the bottom line. A stretched valuation limits the upside potential of the stock.
The stock has jumped 5.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.
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Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report