Jill Bright, a director at Interactive Brokers (IBKR), recently bought 135 shares. The buy increased her stake by 6%, and came to a total cost of $29,634.
This is the first insider buy at the brokerage in over two years. Otherwise, company insiders have been periodic sellers of shares. The company’s Vice Chairman of the Board has been a regular and consistent seller, as well as the CFO and CIO.
Overall, IBKR insiders own 2.7% of shares.
The brokerage firm has soared over 130% in the past year, beating the overall stock market by about sixfold.
Revenues rose 15%, bucked by a rising investor interest in the stock market again, and a 10% increase in earnings. Shares now trade at about 31 times earnings, historically on the higher end for shares, which were closer to 13-15 times earnings just over a year ago.
Action to take: Interactive Brokers shares are in an uptrend, and momentum investors may like the stock here as a trade in the months ahead. It’s also an ideal stock to buy on days when the market sells off on news-driven events, as increased market activity up or down could benefit shares.
Interactive Brokers also pays a 0.5% dividend at current prices.
For traders, given the current momentum in shares, the June $250 calls, last trading for about $10.40, could see mid-double-digit returns from here.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.