IG Group (LON:IGG) Issues Quarterly Earnings Results

IG Group (LON:IGG) released its quarterly earnings data on Thursday. The company reported GBX 68.90 earnings per share for the quarter, Digital Look Earnings reports. IG Group had a return on equity of 26.63% and a net margin of 43.07%.

Here are the key takeaways from IG Group’s conference call:

• IG will acquire Underdog, a U.S. daily fantasy sports and prediction-markets operator, for $1.1 billion upfront plus a performance-based earn-out. The deal gives IG access to a fast-growing market, nearly 1 million monthly active users, and a vertically integrated brokerage, exchange, clearing, and market-making infrastructure.
• Underdog reported $466 million of net revenue for the 12 months ended June 2026, up 21% year over year, while monthly active users increased 39%. IG expects the combined group to grow faster than its standalone target of at least 10% annual organic revenue growth.
• Management expects the acquisition to be broadly neutral to adjusted EPS in year one and double-digit percentage accretive by year three, with return on invested capital exceeding IG’s weighted average cost of capital by that point.
• The transaction is expected to close in late 2026 or early 2027, subject to regulatory and antitrust approvals. IG said Underdog’s prediction-market activity is still early, with less than 1% of handle currently coming from prediction markets, although management expects that mix to become dominant over time.
• IG plans to pause its current share buyback, with a possible resumption in 2027 after the acquisition and proposed redomiciliation are completed. The transaction will be funded with new equity and debt, though management expects pro forma gross leverage to remain below 2x EBITDA at the end of 2026.

IG Group Trading Up 1.0%

Shares of IGG stock traded up GBX 17 during mid-day trading on Thursday, reaching GBX 1,706. 733,420 shares of the stock traded hands, compared to its average volume of 6,699,536. The company has a market cap of £5.64 billion, a price-to-earnings ratio of 16.23, a price-to-earnings-growth ratio of -1.44 and a beta of 0.53. The company has a quick ratio of 2.40, a current ratio of 215.53 and a debt-to-equity ratio of 31.16. The stock’s fifty day simple moving average is GBX 1,823.43 and its two-hundred day simple moving average is GBX 1,561.45. IG Group has a 1-year low of GBX 1,016 and a 1-year high of GBX 1,956.

IG Group declared that its board has approved a stock repurchase plan on Wednesday, April 1st that permits the company to repurchase 0 shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s management believes its shares are undervalued.

Analyst Ratings Changes

Several research analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft raised their target price on shares of IG Group from GBX 1,650 to GBX 1,750 and gave the stock a “buy” rating in a report on Wednesday, May 20th. Royal Bank Of Canada lifted their target price on IG Group from GBX 1,600 to GBX 1,850 and gave the company an “outperform” rating in a research report on Wednesday, May 20th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a GBX 1,250 target price on shares of IG Group in a report on Wednesday, May 20th. Five investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, IG Group currently has a consensus rating of “Buy” and an average target price of GBX 1,288.

About IG Group

IG Group Holdings plc (“IG”) is a FTSE 100 financial technology company operating at the intersection of retail trading, technology and capital markets. Through its trusted brands – IG, tastytrade, Freetrade and Independent Reserve – the Group serves over 1.3 million customers worldwide, providing leveraged trading, stock trading and investments, and cryptocurrency trading via its proprietary platforms. For more information, visit www.iggroup.com.