On July 16, Interactive Brokers declined 3.04% in regular trading, trading at $93.80/share, with turnover of $46.75 million. The stock retreated amid broad weakness across the Investment Banking & Brokerage sector, where Goldman Sachs fell 4.31%, Morgan Stanley declined 4.18%, and Robinhood dropped 3.11%.

Adding to near-term headwinds, recent reports indicate that a US regulatory investigation into alleged insider trading tied to the Chinese securities regulator's crackdown on Futu and Tiger Brokers is targeting accounts held at Interactive Brokers. The probe involves approximately $137 million in suspected illicit profits from short-term put options purchased ahead of the regulatory announcement in May.

The decline comes ahead of the company's Q2 earnings report scheduled for July 21, with consensus estimates calling for revenue of $1.748 billion (up 28.73% year-over-year) and adjusted EPS of $0.63. Multiple analysts have recently raised price targets, including Goldman Sachs ($114), Barclays ($108), and Piper Sandler ($105), all maintaining bullish ratings.

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