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If You Invested $1000 in Interactive Brokers Group, Inc. a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Interactive Brokers Group, Inc. (IBKR - Free Report) 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, Switzerland, Hungary, India, China (Hong Kong and Shanghai), Japan, Singapore, and Australia. As of Jun 30, 2024, the company had 2,951 employees.
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 Jun 30, 2024, Interactive Brokers’ primary assets were its ownership of 25.7% of the membership interests in IBG, Inc. The remaining 74.3% of the membership interests were held by IBG Holdings LLC.
As of Jun 30, 2024, Interactive Brokers had $136.6 billion in total assets, $3.9 billion in cash and cash equivalents and $15.2 billion in total equity. As of the same date, Interactive Brokers’ total customer accounts were 2.92 million and total customer Daily Average Revenue Trades (DARTs) were 2.39 million.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Interactive Brokers Group, Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2014 would be worth $5,793.50, or a gain of 479.35%, as of October 7, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 192.24% and the price of gold increased 110.55% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for IBKR.
Shares of Interactive Brokers have outperformed the industry in the past six months. Its second-quarter 2024 results were aided by higher revenues. The company's efforts to develop proprietary software, low compensation expenses relative to net revenues, an increase in emerging market customers and high rates are expected to continue to boost revenues. We project total net revenues (GAAP) to witness a CAGR of 5.7% over the next three years. Interactive Brokers’ enhanced capital distribution plans seem sustainable given a solid liquidity position. Its initiatives to expand the reach of its services will support financials. However, elevated operating expenses (owing to technology upgrades and investments in franchise) are expected to hurt the bottom line to an extent. We expect total non-interest expenses to witness a CAGR of 6.9% by 2026.
The stock has jumped 20.65% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024; the consensus estimate has moved up as well.
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If You Invested $1000 in Interactive Brokers Group, Inc. a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Interactive Brokers Group, Inc. (IBKR - Free Report) 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, Switzerland, Hungary, India, China (Hong Kong and Shanghai), Japan, Singapore, and Australia. As of Jun 30, 2024, the company had 2,951 employees.
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 Jun 30, 2024, Interactive Brokers’ primary assets were its ownership of 25.7% of the membership interests in IBG, Inc. The remaining 74.3% of the membership interests were held by IBG Holdings LLC.
As of Jun 30, 2024, Interactive Brokers had $136.6 billion in total assets, $3.9 billion in cash and cash equivalents and $15.2 billion in total equity. As of the same date, Interactive Brokers’ total customer accounts were 2.92 million and total customer Daily Average Revenue Trades (DARTs) were 2.39 million.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Interactive Brokers Group, Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2014 would be worth $5,793.50, or a gain of 479.35%, as of October 7, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 192.24% and the price of gold increased 110.55% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for IBKR.
Shares of Interactive Brokers have outperformed the industry in the past six months. Its second-quarter 2024 results were aided by higher revenues. The company's efforts to develop proprietary software, low compensation expenses relative to net revenues, an increase in emerging market customers and high rates are expected to continue to boost revenues. We project total net revenues (GAAP) to witness a CAGR of 5.7% over the next three years. Interactive Brokers’ enhanced capital distribution plans seem sustainable given a solid liquidity position. Its initiatives to expand the reach of its services will support financials. However, elevated operating expenses (owing to technology upgrades and investments in franchise) are expected to hurt the bottom line to an extent. We expect total non-interest expenses to witness a CAGR of 6.9% by 2026.
The stock has jumped 20.65% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024; the consensus estimate has moved up as well.