Geode Capital Management LLC Sells 14,278 Shares of Futu Holdings Limited Sponsored ADR $FUTU

Key Points

• Geode Capital Management trimmed its Futu stake by 2.2% in the fourth quarter, selling 14,278 shares and ending with 621,466 shares valued at about $100.9 million.
• Futu is facing a mixed-to-negative news backdrop: analysts are still split on the stock, but recent headlines include a Strong Sell call from Zacks, securities-law investigations, and reports that the company is suspending certain buying and deposit services for Chinese mainland accounts.
• The company’s latest earnings missed expectations, with EPS of $0.77 versus the $2.89 consensus and revenue of $694.2 million versus $761.4 million expected, even as Futu recently paid a special $2.60 dividend.

Geode Capital Management LLC reduced its stake in Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Free Report) by 2.2% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 621,466 shares of the company's stock after selling 14,278 shares during the period. Geode Capital Management LLC owned 0.45% of Futu worth $100,861,000 at the end of the most recent reporting period.

A number of other institutional investors also recently bought and sold shares of FUTU. Hantz Financial Services Inc. grew its holdings in Futu by 73.8% in the fourth quarter. Hantz Financial Services Inc. now owns 1,401 shares of the company's stock worth $230,000 after purchasing an additional 595 shares during the period. Swedbank AB grew its holdings in Futu by 6.6% in the fourth quarter. Swedbank AB now owns 68,000 shares of the company's stock worth $11,166,000 after purchasing an additional 4,200 shares during the period. Global Retirement Partners LLC grew its holdings in Futu by 84.8% in the fourth quarter. Global Retirement Partners LLC now owns 987 shares of the company's stock worth $162,000 after purchasing an additional 453 shares during the period. Leonteq Securities AG purchased a new stake in Futu in the fourth quarter worth about $415,000. Finally, Fairtree Asset Management Pty Ltd purchased a new stake in Futu in the fourth quarter worth about $490,000.

Key Headlines Impacting Futu

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

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. The Goldman Sachs Group cut shares of Futu from a "buy" rating to a "neutral" rating and set a $102.13 price objective on the stock. in a report on Monday, May 25th. Jefferies Financial Group restated a "buy" rating and issued a $170.50 price objective on shares of Futu in a report on Thursday, May 28th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $87.00 price objective (down from $300.00) on shares of Futu in a report on Friday, May 22nd. Barclays cut their price objective on shares of Futu from $236.00 to $200.00 and set an "overweight" rating on the stock in a report on Monday, March 16th. Finally, Wall Street Zen cut shares of Futu from a "hold" rating to a "sell" rating in a report on Saturday, May 30th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $162.80.

Futu Stock Performance

Shares of NASDAQ FUTU opened at $92.33 on Friday. The firm's 50 day moving average price is $137.17 and its 200-day moving average price is $152.46. The company has a market cap of $12.94 billion, a PE ratio of 10.16, a P/E/G ratio of 0.90 and a beta of 0.40. Futu Holdings Limited Sponsored ADR has a 52-week low of $80.50 and a 52-week high of $202.53.

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

Futu Announces Dividend

The company also recently announced a special dividend, which was paid on Wednesday, April 29th. Stockholders of record on Thursday, April 16th were paid a $2.60 dividend. The ex-dividend date was Thursday, April 16th. Futu's dividend payout ratio is currently 28.05%.

Futu 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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