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Interactive Brokers insider sells shares as company's stock deemed undervalued

Published Sep 27, 2023 03:14AM ET
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Thomas Frank, the Chief Information Officer of Interactive Brokers Group Inc (NASDAQ:IBKR), sold 13,188 shares of the company on Monday, sparking discussions about the company’s stock performance and its relationship with insider transactions. Over the past year, there have been no insider purchases and a total of 50 insider sales for Interactive Brokers Group Inc.

On the day of Frank's sale, shares of the company were trading at $87.8 each, resulting in a market capitalization of $9.23 billion. The stock’s price-earnings ratio of 17.61 is lower than both the industry median of 18.33 and the company’s historical median price-earnings ratio.

According to GuruFocus Value, an intrinsic value estimate which considers historical multiples, future business performance estimates, and a GuruFocus adjustment factor, Interactive Brokers Group Inc is modestly undervalued. The stock’s price-to-GF-Value ratio of 0.84 indicates that it is trading below its intrinsic value, with a GF Value of $104.22.

Despite Frank's recent sell-off, it is important to note that insider selling does not necessarily indicate a negative outlook for the company. The insider may have personal financial reasons or other considerations that prompted the sell. However, the high number of insider sales over the past year could be a point of concern for potential investors.

Investors are advised to consider various factors when making investment decisions, including the company’s financial health, market conditions, and industry trends. Monitoring the company’s performance and insider transactions in the months ahead will be crucial.

Interactive Brokers Group Inc is a leading global electronic broker specializing in executing and clearing trades in securities, futures, and foreign exchange instruments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Interactive Brokers insider sells shares as company's stock deemed undervalued
 

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