On September 27, 2023, Chief Information Officer Thomas Frank sold 26,286 shares of Interactive Brokers Group Inc (IBKR, Financial). This transaction is part of a series of insider sells by Frank over the past year, totaling 544,606 shares sold and no shares purchased.
Thomas Frank is a key figure at Interactive Brokers Group Inc, serving as the Chief Information Officer. His role involves overseeing the company's information technology strategy, ensuring the company's technology resources are aligned with its business needs.
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 serves individual investors, hedge funds, proprietary trading groups, financial advisors, and introducing brokers.
The insider transaction history for Interactive Brokers Group Inc shows a trend of insider selling, with 52 insider sells and no insider buys over the past year. This trend is illustrated in the following image:
The relationship between insider selling and the stock price can be complex. While insider selling can sometimes indicate a lack of confidence in the company's future prospects, it can also be a personal decision based on the insider's financial needs or portfolio strategy. In this case, the consistent selling by the insider over the past year may raise questions among investors.
On the day of the insider's recent sell, shares of Interactive Brokers Group Inc were trading for $87.11, giving the stock a market cap of $9.396 billion. The price-earnings ratio is 17.93, lower than both the industry median of 18.16 and 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. With a price of $87.11 and a GuruFocus Value of $104.00, the stock has a price-to-GF-Value ratio of 0.84. This valuation is depicted in the following image:
In conclusion, while the insider's consistent selling over the past year may raise some concerns, the stock's current valuation suggests that it may still offer value to investors. As always, investors should conduct their own research and consider their own investment objectives before making investment decisions.
