FTSE 100 stock IG Group (LSE: IGG) has crashed spectacularly. Since hitting a 2026 high of 1,954p in June, it’s fallen to 968p – a decline of 50%.

Can it bounce back? Well, analysts and a number of company insiders seem to believe it can.

Two huge falls in 2026

IG Group’s share price has experienced two big falls in recent months. The first came in late July after the company announced that it was planning to buy US prediction markets company Underdog for $1.3bn. Investors didn’t like this acquisition at all.

More recently (2 October), the stock plunged more than 20% after the online trading firm cut its annual revenue forecast due to lower levels of market volatility. It now expects 2026 total revenue growth to be in a mid-single-digit percent range year on year.

IG is looking cheap now

After these two big dips, I think there could be an opportunity for investors. There are a few reasons why.

One is the stock now looks cheap. With analysts forecasting earnings per share of 107p for the current financial year (ending 31 May), the forward-looking price-to-earnings (P/E) is only nine.

Another is that market volatility’s picking up dramatically. This should provide a boost to IG’s revenues – I’d expect its next trading update to be better than the last.

One other thing worth highlighting is the fact that the dividend yield has risen to around 5%. So investors are being paid to wait for a rebound in the share price.

City analysts are bullish

Of course, there are no guarantees that the shares will rebound. However, as I said at the top, both analysts and insiders are bullish.

Looking at analysts’ ratings, of the eight firms covering IG, seven rate it as either a Buy or a Strong Buy (the other has it at Hold). Note that the average analyst price target is 1,477p, which is about 53% above the current share price.

… And so are C-suites

As for insiders, both CEO Breon Corcoran and CFO Clifford Abrahams have purchased shares. On 23 October, the former bought 10,000 shares at 944p each while the latter snapped up 30,000 shares at 945p each.

This insider dealing suggests they expect the share price to bounce (no director buys company stock if they’re expecting it to fall).

Worth a closer look?

Given the low valuation, the bullish broker sentiment, and the insider buying, I reckon IG shares are worth considering as an investment. Taking a three-to-five-year view, I see the potential for market-beating returns.

There are risks around the Underdog acquisition and competition from rivals. However, after a 50% fall in the share price, the risk/reward proposition looks attractive to me.

Should you invest £5,000 in IG Group Holdings right now?

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Edward Sheldon does not hold any positions in the companies mentioned.