Futu Holdings Limited Sponsored ADR $FUTU Shares Sold by Prudential PLC

Key Points

• Prudential PLC reduced its Futu stake by 42.2% in the fourth quarter, selling 44,697 shares and leaving it with 61,258 shares valued at about $10.1 million.
• Futu is facing a mixed market backdrop: Bank of America kept a Buy rating and the company announced a partnership between Moomoo and Kalshi, but multiple law firms have also launched securities-law investigations.
• The stock has come under pressure from analyst downgrades and operating concerns, including a Strong Sell call from Zacks and reports that Futu is suspending some buy/deposit services for Chinese mainland investors.

Prudential PLC cut its stake in Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Free Report) by 42.2% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 61,258 shares of the company's stock after selling 44,697 shares during the quarter. Prudential PLC's holdings in Futu were worth $10,059,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of FUTU. Geneos Wealth Management Inc. purchased a new stake in shares of Futu in the first quarter valued at approximately $27,000. Quarry LP purchased a new stake in shares of Futu in the third quarter valued at approximately $51,000. Farther Finance Advisors LLC increased its position in shares of Futu by 53.2% in the fourth quarter. Farther Finance Advisors LLC now owns 331 shares of the company's stock valued at $54,000 after buying an additional 115 shares in the last quarter. Wealth Enhancement Advisory Services LLC purchased a new stake in shares of Futu in the fourth quarter valued at approximately $61,000. Finally, Jones Financial Companies Lllp increased its position in shares of Futu by 442.4% in the first quarter. Jones Financial Companies Lllp now owns 640 shares of the company's stock valued at $66,000 after buying an additional 522 shares in the last quarter.

More Futu News

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Bank of America maintained its Buy rating on Futu, which could help support sentiment by signaling that at least one major analyst still sees upside. Bofa Maintains Buy Rating on Futu Holdings (FUTU)
• Positive Sentiment: Futu’s Moomoo platform partnered with Kalshi to expand access to prediction markets, which may broaden product offerings and user engagement over time. Moomoo Partners with Kalshi to Expand Access to Prediction Markets
• Neutral Sentiment: Rosen Law Firm and other plaintiff firms launched investigations into possible securities-law claims, alleging Futu may have issued misleading business information; these announcements add legal overhang but do not yet confirm wrongdoing. ROSEN, TOP RANKED INVESTOR COUNSEL, Encourages Futu Holdings Limited Investors to Inquire About Securities Class Action Investigation - FUTU
• Neutral Sentiment: Bragar Eagel & Squire also said it is investigating Futu on behalf of stockholders, increasing headline risk and potential distraction for management. FUTU HOLDINGS NASDAQ: FUTU ALERT: Bragar Eagel & Squire, P.C. is Investigating Futu Holdings Limited on Behalf of Futu Stockholders and Encourages Investors to Contact the Firm
• Negative Sentiment: Futu was added to Zacks’ Strong Sell list, which can reinforce bearish momentum and signal weakening near-term fundamentals or sentiment. New Strong Sell Stocks for June 4th
• Negative Sentiment: Reports that Futu will suspend buy orders and prevent some Chinese mainland investors from adding new positions suggest regulatory or compliance-related pressure on its core user base, which could weigh on growth. Futu to Suspend Buy Orders for Stocks/ Others, Starting Next Fri
• Negative Sentiment: Additional coverage said Futu is halting deposit and buying services for Chinese mainland accounts, adding concern that the company may face tighter operating restrictions in an important market. Futu Follows Tiger Brokers, Longbridge in Halting Deposit, Buying Services for Chinese Mainland Accounts

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Jefferies Financial Group restated a "buy" rating and issued a $170.50 price objective on shares of Futu in a research report on Thursday, May 28th. Zacks Research cut Futu from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 8th. The Goldman Sachs Group cut Futu from a "buy" rating to a "neutral" rating and set a $102.13 price objective for the company. in a research report on Monday, May 25th. Barclays cut their price objective on Futu from $236.00 to $200.00 and set an "overweight" rating for the company in a research report on Monday, March 16th. Finally, Wall Street Zen cut Futu from a "hold" rating to a "sell" rating in a research report on Saturday, May 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $162.80.

Futu Stock Performance

Shares of FUTU opened at $92.33 on Friday. Futu Holdings Limited Sponsored ADR has a one year low of $80.50 and a one year high of $202.53. The stock has a market capitalization of $12.94 billion, a price-to-earnings ratio of 10.16, a PEG ratio of 0.94 and a beta of 0.40. The stock has a 50 day moving average price of $137.17 and a 200 day moving average price of $152.46.

Futu (NASDAQ:FUTU - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $2.89 by ($2.12). Futu had a return on equity of 26.48% and a net margin of 41.87%.The firm had revenue of $694.17 million for the quarter, compared to analysts' expectations of $761.35 million. On average, analysts predict that Futu Holdings Limited Sponsored ADR will post 10.73 earnings per share for the current year.

Futu Announces Dividend

The business also recently disclosed a special dividend, which was paid on Wednesday, April 29th. Shareholders of record on Thursday, April 16th were paid a dividend of $2.60 per share. The ex-dividend date of this dividend was Thursday, April 16th. Futu's payout ratio is 28.05%.

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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