On September 29, 2023, Chief Information Officer Thomas Frank sold 26,376 shares of Interactive Brokers Group Inc (IBKR, Financial). This move is part of a series of transactions made by the insider over the past year, which saw a total of 570,982 shares sold and no shares purchased.
Thomas Frank is a key figure in the Interactive Brokers Group Inc, serving as the Chief Information Officer. His role involves overseeing the company's information technology strategy, ensuring that the company's technological resources are aligned with its business needs.
Interactive Brokers Group Inc is a leading automated global electronic broker that specializes in routing orders and executing and processing trades in securities, futures, and foreign exchange instruments on more than 135 electronic exchanges and market centers around the world. The company caters to institutional and professional traders for both market making and brokerage businesses.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 54 insider sells and no insider buys. This trend is illustrated in the following image:
The relationship between insider transactions and the stock price is often closely watched by investors. In the case of Interactive Brokers Group Inc, the stock was trading at $87.4 per share on the day of the insider's recent sell, giving the company a market cap of $9.166 billion.
The company's price-earnings ratio stands at 17.48, which is lower than the industry median of 18.47 and also lower than the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its own historical performance.
The GuruFocus Value of Interactive Brokers Group Inc is $103.57, resulting in a price-to-GF-Value ratio of 0.84. This indicates that the stock is modestly undervalued. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts. The GF Value image below provides a visual representation of this analysis:
In conclusion, the insider's recent sell-off, coupled with the company's valuation metrics, suggests that Interactive Brokers Group Inc may be a stock to watch closely in the coming months.
