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Here's How Much You'd Have If You Invested $1000 in Interactive Brokers Group, Inc. a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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 135 electronic exchanges and market centers worldwide.
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 has decided not to report its operations through two separate segments.
Prior to its IPO in May 2017, 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, 2020, Interactive Brokers’ primary assets were its ownership of 21.8% of the membership interests in IBG LLC. The remaining 78.2% of the membership interests were held by IBG Holdings LLC.
As of Dec 31, 2020, Interactive Brokers had $95.7 billion in total assets, $48.0 billion in cash and cash equivalents (including segregated cash and securities), and $2 billion in stockholders’ equity.
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 March 2011 would be worth $4,822.26, or a gain of 382.23%, as of March 24, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 201.38% and gold's return of 16.23% over the same time frame.
Looking ahead, analysts are expecting more upside for IBKR.
Shares of Interactive Brokers have underperformed the industry over the past year. Its earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth-quarter 2020 results were aided by higher revenues. The company's efforts to develop proprietary software (including IBKR Lite) and an increase in emerging market customers are expected to continue to aid financials. The deal to buy the retail unit of Folio Investments will strengthen its position in the online brokerage space. Its efficient capital deployments indicate a strong liquidity position. While elevated costs (owing to technology upgrades and investments in franchise) and the near-zero interest rate environment remain major woes; its low level of compensation expense relative to net revenues, owing to its technological excellence, is encouraging.
The stock has jumped 5.19% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021; the consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Interactive Brokers Group, Inc. a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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 135 electronic exchanges and market centers worldwide.
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 has decided not to report its operations through two separate segments.
Prior to its IPO in May 2017, 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, 2020, Interactive Brokers’ primary assets were its ownership of 21.8% of the membership interests in IBG LLC. The remaining 78.2% of the membership interests were held by IBG Holdings LLC.
As of Dec 31, 2020, Interactive Brokers had $95.7 billion in total assets, $48.0 billion in cash and cash equivalents (including segregated cash and securities), and $2 billion in stockholders’ equity.
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 March 2011 would be worth $4,822.26, or a gain of 382.23%, as of March 24, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 201.38% and gold's return of 16.23% over the same time frame.
Looking ahead, analysts are expecting more upside for IBKR.
Shares of Interactive Brokers have underperformed the industry over the past year. Its earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth-quarter 2020 results were aided by higher revenues. The company's efforts to develop proprietary software (including IBKR Lite) and an increase in emerging market customers are expected to continue to aid financials. The deal to buy the retail unit of Folio Investments will strengthen its position in the online brokerage space. Its efficient capital deployments indicate a strong liquidity position. While elevated costs (owing to technology upgrades and investments in franchise) and the near-zero interest rate environment remain major woes; its low level of compensation expense relative to net revenues, owing to its technological excellence, is encouraging.
The stock has jumped 5.19% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2021; the consensus estimate has moved up as well.