On October 13, 2023, Chief Information Officer Thomas Frank sold 26,376 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 704,068 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. Its four principal lines of business are Market Making, Electronic Brokerage, eBrokerage, and Clearing.
The insider's recent sell has raised some eyebrows, especially considering the lack of insider buys over the past year. The insider transaction history for Interactive Brokers Group Inc shows zero insider buys and 64 insider sells over the past year.
The trend of insider selling could be a cause for concern for potential investors. However, it's important to note that insider selling does not necessarily indicate a lack of confidence in the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio.
On the day of the insider's recent sell, shares of Interactive Brokers Group Inc were trading for $85.71 apiece, giving the stock a market cap of $9.19 billion. The price-earnings ratio is 17.54, which is lower than the industry median of 18.32 and 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 estimates of business performance, Interactive Brokers Group Inc is modestly undervalued. With a price of $85.71 and a GuruFocus Value of $101.73, the stock has a price-to-GF-Value ratio of 0.84.
In conclusion, while the insider's recent sell and the trend of insider selling at Interactive Brokers Group Inc may raise some concerns, the company's valuation suggests that the stock is modestly undervalued. Investors should consider these factors along with the company's financial performance and market conditions when making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
