Interactive Brokers Group Inc. (NASDAQ:IBKR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “Interactive Brokers’ third-quarter 2016 earnings lagged the Zacks Consensus Estimate primarily due to lower revenues and increased expenses. Also, the company’s dependence on the Market Making segment for dividend payments remains a matter of concern, given the dismal performance of the same over the last several quarters. Further, increased dependence on IBG LLC is also an area of concern because if the latter fails to provide sufficient funds, Interactive Brokers’ financial condition may suffer significantly. Nonetheless, a low level of compensation expense and development of proprietary software continue contributing to the company’s growth. Also, geographic diversification helps the company experience revenue stability.”

Interactive Brokers Group (NASDAQ:IBKR) opened at 37.73 on Monday. The stock’s 50 day moving average price is $35.41 and its 200-day moving average price is $36.02. The firm has a market capitalization of $2.56 billion, a price-to-earnings ratio of 25.86 and a beta of 0.97. Interactive Brokers Group has a one year low of $29.50 and a one year high of $44.85.

Interactive Brokers Group (NASDAQ:IBKR) last released its quarterly earnings results on Tuesday, October 18th. The company reported $0.30 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by $0.02. The firm earned $345 million during the quarter, compared to the consensus estimate of $330.70 million. Interactive Brokers Group had a net margin of 6.26% and a return on equity of 1.72%. The business’s revenue for the quarter was down 3.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.35 earnings per share. On average, equities research analysts expect that Interactive Brokers Group will post $1.59 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 14th. Investors of record on Thursday, December 1st will be paid a $0.10 dividend. The ex-dividend date of this dividend is Tuesday, November 29th. This represents a $0.40 annualized dividend and a yield of 1.06%. Interactive Brokers Group’s dividend payout ratio (DPR) is presently 27.40%.

A number of hedge funds have recently added to or reduced their stakes in the stock. Bank of Montreal Can boosted its position in shares of Interactive Brokers Group by 31.7% in the third quarter. Bank of Montreal Can now owns 3,452 shares of the company’s stock valued at $121,000 after buying an additional 830 shares in the last quarter. Creative Planning boosted its position in shares of Interactive Brokers Group by 106.3% in the third quarter. Creative Planning now owns 3,587 shares of the company’s stock valued at $127,000 after buying an additional 1,848 shares in the last quarter. Societe Generale bought a new position in shares of Interactive Brokers Group during the second quarter valued at $135,000. SG Americas Securities LLC bought a new position in shares of Interactive Brokers Group during the second quarter valued at $135,000. Finally, Tower Research Capital LLC TRC boosted its position in shares of Interactive Brokers Group by 2,477.5% in the second quarter. Tower Research Capital LLC TRC now owns 4,588 shares of the company’s stock valued at $162,000 after buying an additional 4,410 shares in the last quarter. Institutional investors and hedge funds own 86.02% of the company’s stock.

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About Interactive Brokers Group

Interactive Brokers Group, Inc (IBG, Inc) is a holding company. The Company is an automated global electronic broker and market maker specializing in routing orders, and executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on over 100 electronic exchanges and trading venues around the world.

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