Arrowstreet Capital Limited Partnership Has $80.17 Million Position in Futu Holdings Limited Sponsored ADR $FUTU

Key Points

• Arrowstreet Capital reduced its Futu stake by 57.1% in the first quarter, selling 779,439 shares and retaining 586,241 shares valued at approximately $80.17 million.
• Analyst sentiment remains mixed: Futu has a “Moderate Buy” consensus rating and a $162.80 average price target, but several firms recently downgraded the stock, including JPMorgan, Goldman Sachs, and Zacks Research.
• Futu’s latest quarterly results missed expectations, with earnings per share of $0.77 versus a $2.89 consensus estimate and revenue of $694.17 million versus $761.35 million; the company also faces securities-fraud litigation and alleged regulatory-penalty disclosures.

Arrowstreet Capital Limited Partnership cut its holdings in Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Free Report) by 57.1% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 586,241 shares of the company's stock after selling 779,439 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 0.42% of Futu worth $80,174,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Aspex Management HK Ltd lifted its stake in Futu by 37.5% in the fourth quarter. Aspex Management HK Ltd now owns 3,371,597 shares of the company's stock valued at $553,650,000 after buying an additional 919,724 shares during the period. State Street Corp lifted its position in shares of Futu by 18.4% during the 2nd quarter. State Street Corp now owns 1,212,481 shares of the company's stock valued at $149,851,000 after acquiring an additional 188,840 shares during the period. Greenwoods Asset Management Hong Kong Ltd. boosted its stake in Futu by 14.0% during the fourth quarter. Greenwoods Asset Management Hong Kong Ltd. now owns 1,135,821 shares of the company's stock worth $186,513,000 after acquiring an additional 139,473 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Futu by 805.2% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,126,633 shares of the company's stock worth $195,933,000 after acquiring an additional 1,002,171 shares in the last quarter. Finally, Bank of America Corp DE grew its holdings in Futu by 34.4% in the second quarter. Bank of America Corp DE now owns 1,006,656 shares of the company's stock worth $124,413,000 after purchasing an additional 257,389 shares during the period.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on FUTU shares. Wall Street Zen downgraded shares of Futu from a "hold" rating to a "sell" rating in a research note on Saturday, May 30th. JPMorgan Chase & Co. reissued a "neutral" rating and set a $87.00 price objective (down from $300.00) on shares of Futu in a research report on Friday, May 22nd. Jefferies Financial Group restated a "buy" rating and issued a $170.50 target price on shares of Futu in a research note on Thursday, May 28th. Zacks Research lowered Futu from a "hold" rating to a "strong sell" rating in a research report on Monday, June 8th. Finally, The Goldman Sachs Group downgraded Futu from a "buy" rating to a "neutral" rating and set a $102.13 price target on the stock. in a research note on Monday, May 25th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $162.80.

• Futu Holdings NASDAQ: FUTU Stock: Is the Chinese Fintech Company a Buy?

More Futu News

Here are the key news stories impacting Futu this week:

• Negative Sentiment: Multiple firms reiterated that a securities fraud class action has been filed against Futu and are actively soliciting investors with losses to join the case or seek lead-plaintiff status before the August 25 deadline.
• Negative Sentiment: One notice specifically alleges the lawsuit involves concealed regulatory penalties, which could be interpreted by investors as a sign of heightened compliance and legal risk. Article: FUTU Shareholder Alert
• Neutral Sentiment: Another article from Zacks was a valuation comparison of Futu versus Orix, which is more informational than market-moving and does not appear to be the main driver of trading today. Article: IX vs. FUTU

Futu Price Performance

Shares of NASDAQ FUTU opened at $99.36 on Monday. The company has a 50-day moving average price of $100.01 and a 200-day moving average price of $134.95. The stock has a market capitalization of $13.93 billion, a P/E ratio of 10.93, a P/E/G ratio of 1.17 and a beta of 0.39. Futu Holdings Limited Sponsored ADR has a 1 year low of $80.50 and a 1 year high of $202.53.

Futu (NASDAQ:FUTU - Get Free Report) last announced its quarterly earnings results on Thursday, May 28th. The company reported $0.77 earnings per share for the quarter, missing the consensus estimate of $2.89 by ($2.12). The business had revenue of $694.17 million during the quarter, compared to the consensus estimate of $761.35 million. Futu had a net margin of 41.87% and a return on equity of 26.48%. As a group, equities research analysts anticipate that Futu Holdings Limited Sponsored ADR will post 8.95 earnings per share for the current fiscal year.

Futu Company Profile

Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers.

The firm's product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions.

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