On September 25, 2023, Thomas Frank, the Chief Information Officer of Interactive Brokers Group Inc (IBKR, Financial), sold 13,188 shares of the company. This move is part of a series of transactions made by the insider over the past year, during which the insider has sold a total of 518,320 shares and made no purchases.
Interactive Brokers Group Inc is a leading automated global electronic broker that specializes in executing and clearing trades in securities, futures, and foreign exchange instruments. The company caters to professional traders, institutions, and financial advisors, providing them with advanced trading technology, superior execution capabilities, worldwide electronic access, and sophisticated risk management tools.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider transactions. Over the past year, there have been no insider buys and 50 insider sells for Interactive Brokers Group Inc. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Interactive Brokers Group Inc were trading at $87.8 each, giving the company a market cap of $9.23 billion. The price-earnings ratio stands at 17.61, which is lower than the industry median of 18.33 and also lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Interactive Brokers Group Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.84, with a GF Value of $104.22. This suggests that the stock is trading below its intrinsic value.
The insider's decision to sell a significant number of shares could be based on a variety of factors. It's important to note that insider selling does not necessarily indicate a negative outlook for the company. The insider may have personal financial reasons or other considerations that prompted the sell. However, the high number of insider sells over the past year could be a point of concern for potential investors. As always, it's crucial to consider a wide range of factors when making investment decisions, including the company's financial health, market conditions, and industry trends.
In conclusion, while the insider's recent sell of Interactive Brokers Group Inc shares may raise questions, the company's stock appears to be modestly undervalued according to the GuruFocus Value. Investors should keep a close eye on the company's performance and insider transactions in the coming months.
