Interactive Brokers Group, Inc. - Gabelli Research Analyst Mac Sykes (4-3-2018)

Interactive Brokers Group, Inc. - Gabelli Research Analyst Mac Sykes (4-3-2018)

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Interactive Brokers reported strong March monthly metrics. Client accounts increased 9600 to 517,000. Client equity was $129 billion. On a year over year basis, client accounts increased 28% while client equity rose 33%.

In December 2011 we wrote an extensive report about the company. Our thesis was simple.
Unique robust platform Lowest cost access to markets Significant growth opportunity due to global reach and capabilities
Since that report in 2011, the shares have compounded at a 28% CAGR vs. 15.0% for the S&P 500.
Today, even with the strong gains, the investment opportunity with Interactive Brokers remains quite bright.
At just 500k accounts, there is still significant share opportunity with the market in the multiple tens of millions.
Global interest rates are moving higher which will positively impact the firm’s net interest margin which was 1.4% at the end of 4Q. As of March, margin and credit balances totaled $76bn.

In short, we continue to be excited about the long-term prospects of this unique, well-managed entrepreneurial firm. We estimate EPS could grow from $1.25 in 2017 to close to $3.00 per share by the year 2020 and estimate a Private Market Value of $78 per share.

Source: Gabelli TV (via YouTube)
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