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Interactive's April Data Improves - Analyst Blog
Interactive Brokers Group, Inc
) Electronic Brokerage segment witnessed a year-over-year
improvement in brokerage metrics for Apr 2013. The segment clears
and settles trade globally for both individual and institutional
Total customer Daily Average Revenue Trades (DARTs) hiked 17% from Apr 2012 and 7% from Mar 2013 to 480,000. Further, total customer accounts climbed 12% from the prior-year month and 1% from the prior month to 219,700.
Interactive recorded Cleared Customer DARTs of 442,000, increasing 15% from Apr 2012 and 9% from Mar 2013. Moreover, on an annualized basis, Cleared Average DART per customer account of 508,000 increased 3% from the comparable prior-year period and 7% from the previous month.
Additionally, Interactive's total option contracts increased 15% from the prior-year month and 18% from the prior month level to 22,867 in the month under review. Moreover, future contracts surged 38% from Apr 2012 and 12% from Mar 2013 to 9,531.
Interactive also reported period-end statistics for customer equity, customer credit balances and customer margin loan balances. For the period ended Apr 2013, customer equity stood at $36.4 billion, augmenting 25% year over year and 2% from the prior month.
Further, Interactive recorded customer credit balances of $22.6 billion in the month, increasing 20% from the Mar 2012 level and came almost in line with the prior-month levels. Also, the company's customer margin loan balances of $11.0 billion at the end of Apr 2013 surged 26% from $8.7 billion at the end of Apr 2012, and declined 1% from $11.1 billion at the end of Mar 2013.
Although overall brokerage metrics improved, lower trading activities and fluctuating interest rates are expected to mar the financials of the company going forward. Further, Interactive's dependence on IBG LLC and its widespread exposure in the international market remain concerns.
Among other investment brokers, Knight Capital Group, Inc . ( KCG ) is expected to announce its April metrics in the first half of this month.
Currently, Interactive carries a Zacks Rank #3 (Hold). Other investment brokers that are worth considering include LPL Financial Holdings Inc . ( LPLA ) with a Zacks Rank #1 (Strong Buy) and Arlington Asset Investment Corp . ( AI ) with a Zacks Rank #2 (Buy).
ARLINGTON ASSET (AI): Free Stock Analysis Report
INTERACTIVE BRK (IBKR): Free Stock Analysis Report
KNIGHT CAP GP (KCG): Free Stock Analysis Report
LPL FINL HLDGS (LPLA): Free Stock Analysis Report
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