IG Group Shares Extend Losses on $1.3B US Deal, Suspended Buyback

Shares in IG Group Holdings PLC extended a sharp selloff, falling 4.8% to 1390p in recent trading, as investor concerns mounted over a major U.S. acquisition and a suspended share buyback program. The decline continues a negative trend that began on July 31 after the company released its first-half results.

Acquisition and Earnings Trigger Selloff

The pressure on the stock began after the online trading platform announced two significant developments simultaneously. The company reported first-half 2026 results that met analyst forecasts, with total revenue of £642.8 million and adjusted earnings per share of 68.9 pence.

However, the market's focus was captured by the concurrent announcement of a proposed acquisition of Underdog, a U.S. daily fantasy sports and prediction markets operator. The deal carries a total potential consideration of approximately $1.3 billion.

Key Investor Concerns

While the company's reported earnings were in line with expectations, investors appear to be pricing in a number of risks and uncertainties associated with the company's new strategic direction.

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• Deal and Regulatory Risk: The Underdog acquisition introduces significant execution uncertainty and regulatory hurdles in the U.S., where prediction markets face potential state-level challenges and even Supreme Court involvement.
• Operating Performance: Beneath the headline revenue figures, investors noted rising operating costs and a contracting EBITDA margin.
• Capital Allocation: The company has paused its share buyback program. A resumption is not expected until 2027 and is subject to the completion of a corporate redomicile and other capital demands.
• Organic Growth: The company's organic active customer growth was approximately 13%, a figure that stands in contrast to the reported headline growth of 66%, which was heavily influenced by recent acquisitions.

Looking Ahead

Uncertainty also surrounds IG's proposed corporate restructuring, which would see the company redomicile to Jersey pending regulatory and court approvals, targeted for the final quarter of 2026. The market's cautious reaction reflects the unresolved nature of this process.

IG Group plans to provide further clarity on its strategy, capital allocation framework, and medium-term financial targets at a Strategy Update event scheduled for October 22, 2026. Until then, the combination of deal uncertainty and the suspended buyback is expected to weigh on investor sentiment.