In a report released yesterday, Craig Siegenthaler from Bank of America Securities reiterated a Buy rating on Interactive Brokers, with a price target of $83.00.
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Craig Siegenthaler has given his Buy rating due to a combination of factors, including Interactive Brokers’ solid quarterly execution and strong underlying growth metrics. The firm posted record commission revenues and healthy contributions from other lines, maintained a very high operating margin, and continued to grow accounts at an impressive pace, with client equity and cash balances rising even as broader equity markets declined.
He also sees upside from regulatory and product developments that can support future activity and earnings. FINRA’s new intraday margin rules should help trading volumes in the online brokerage space, and IBKR’s ForecastEx platform, including its new ElectionBoard tool, is drawing increased institutional interest, while his unchanged earnings forecasts and valuation framework still imply further price appreciation versus the current share price, justifying the reiterated Buy recommendation.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $88.00 price target.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IBKR in relation to earlier this year.