On September 22, 2023, Thomas Frank, Chief Information Officer of Interactive Brokers Group Inc (IBKR, Financial), sold 28,234 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 505,132 shares and purchased none.
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. Interactive Brokers Group Inc is known for its cost-efficient access to global markets.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider trading activities. Over the past year, there have been 48 insider sells and no insider buys for Interactive Brokers Group Inc.
The above image shows the trend of insider trading activities. It is evident that the insider's selling activities have been consistent over the past year. This could be an indication of the insider's confidence in the company's future performance or a strategic move to diversify personal investment portfolio.
On the day of the insider's recent sell, shares of Interactive Brokers Group Inc were trading at $88.94, giving the company a market cap of $9.41 billion. The price-earnings ratio stands at 17.94, which is lower than the industry median of 18.32 and the company’s historical median price-earnings ratio. This suggests that the stock is relatively undervalued compared to its peers and its own historical performance.
The GF Value, an intrinsic value estimate developed by GuruFocus, further supports this assessment. With a price of $88.94 and a GuruFocus Value of $104.33, Interactive Brokers Group Inc has a price-to-GF-Value ratio of 0.85, indicating that the stock is modestly undervalued.
The GF Value is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of Interactive Brokers Group Inc shares, coupled with the company's valuation metrics, suggests that the stock is currently undervalued. However, potential investors should conduct their own due diligence and consider the company's financial health, market position, and future growth prospects before making an investment decision.
