IBKR: BUY THE TECHY BROKERNASDAQ:IBKR reported strong results for Q3 2024, with adjusted earnings per share of $1.75, reflecting a 12.9% increase from the prior year, albeit slightly below the consensus estimate of $1.78. The company has shown significant growth in customer accounts and daily average revenue trades (DARTs), key drivers behind its performance.
After an initially negative reaction to the earnings report due to the slight miss and overall market trends, shares are stabilizing today. This creates a brief window for a long trade, allowing for a tight stop level to establish a very favorable risk-reward scenario.
Key Highlights Supporting Further Gains:
Total Revenue: $1.37 billion, up 19.2% year-over-year.
Customer Accounts: Grew 28.3% to 3,120,000 accounts.
DARTs: Increased 41.7% to 2.7 million, aligning with expectations.
Strong Capital Position: Cash and equivalents total $69.9 billion, with total assets of $148.5 billion.
Daily Technical Analysis Overview:
Oscillators:
RSI (14): 66.07 (Neutral)
Momentum (10): 4.72 (Buy)
Bull Bear Power: 2.08 (Buy)
Moving Averages:
EMA (10, 20, 50, 100, 200): All in "Buy."
SMA (10, 20, 50, 100, 200): All in "Buy."
Conclusion:
The robust capital position of Interactive Brokers, along with growth in accounts and DARTs, supports a positive outlook for the stock. Despite a slight increase in expenses, the fundamentals remain strong, justifying a buy recommendation. This is a great opportunity to capitalize on the current trend pause. If you'd like to discuss stop levels or have any questions, feel free to reach out!
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Disclaimer: This analysis and recommendation are for informational purposes only and do not constitute financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results. Investing in stocks involves risks, including the loss of principal.
