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Interactive Brokers (IBKR) Stock Down as January DARTs Fall

Zacks Equity Research

Interactive Brokers Group, Inc. IBKR fell nearly 1% following the release of its Electronic Brokerage segment’s performance metrics for January. The segment, which deals with the clearance and settlement of trades for individual and institutional clients globally, reported year-over-year decrease in Daily Average Revenue Trades (DARTs).

Total client DARTs came in at 851,000, down 6% from January 2018 and 11% from December 2018. Total customer accounts grew 22% from the prior-year month and 1% sequentially to 606,800.

Net new accounts were 8,600, plunging 38% year over year, but increasing 54% from the previous month. On an annualized basis, the company recorded Cleared Average DARTs per customer account of 320,000. This reflects a fall of 26% year over year and 11% from December 2018.

Interactive Brokers’ total options contracts were 27.3 million, down 21% from January 2018 and 4% from the last month. Similarly, futures contracts declined 14% from the prior-year month and 10% from the last month to 11.1 million.

At the end of January, client equity was $139.2 billion, up 4% year over year and 8% from December 2018. Further, Interactive Brokers recorded client credit balance of $51 billion, up 5% from the prior-year month and 3% sequentially. However, the company’s customer margin loan balance of $23.8 billion slipped 21% from January 2018 and 12% from the prior month.

Interactive Brokers’ shares have lost 16.9% compared with the industry’s decline of 13.4%, in the past six months.

The stock currently carries a Zacks Rank #4 (Sell).

\You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Among other investment brokers, LPL Financial Holdings Inc. LPLA, The Charles Schwab Corp. SCHW and E*TRADE Financial Corp. (ETFC) are likely to report their monthly metrics information in the coming days.

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