Interactive Brokerage Stock Hits All-Time High on Trading Volume Jump

Investopedia
01-22

Key Takeaways

  • Interactive Brokerage beat fourth-quarter profit and sales forecasts on strong consumer trading volume.
  • Trading volume in stocks soared 65%, and it rose 32% for options.
  • The brokerage also posted a 47% gain in other fees and services revenue.

Shares of Interactive Brokerage Group (IBKR) traded at an all-time high Wednesday, a day after the electronic brokerage firm reported better-than-expected results as strong market gains led to higher consumer trading volume.

The firm posted fourth-quarter earnings per share (EPS) of $1.99, with revenue jumping 22% year-over-year to $1.39 billion. Both exceeded analysts' estimates compiled by Visible Alpha.

Commissions revenue rose 37% to $477 million, with trading volume in stocks soaring 65% and options up 32%. Other fees and services revenue added 47% to $81 million. 

Customer accounts increased 30% to 3.34 million, and customer equity grew 33% to $568.2 billion.

Interactive Brokerage Group shares surged nearly 7% Wednesday morning to $205.83 after earlier touching a record $209.40. They have more than doubled in the past year.

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