Hsbc Holdings PLC Lowers Holdings in Futu Holdings Limited Sponsored ADR $FUTU

Key Points

• Hsbc Holdings PLC cut its Futu stake by 46.4% in the fourth quarter, selling 268,211 shares and leaving it with 310,032 shares valued at about $50.9 million.
• Futu is facing multiple regulatory and legal pressures, including a securities class action and reports that the U.S. SEC is probing alleged insider trading involving Futu and Tiger Brokers.
• Analyst sentiment has weakened after recent rating cuts from firms including JPMorgan, Zacks, Wall Street Zen, and Goldman Sachs, even as Jefferies maintained a buy rating; Futu also recently missed quarterly EPS and revenue estimates.

Hsbc Holdings PLC lessened its holdings in Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Free Report) by 46.4% during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 310,032 shares of the company's stock after selling 268,211 shares during the period. Hsbc Holdings PLC owned 0.22% of Futu worth $50,941,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in FUTU. Geneos Wealth Management Inc. purchased a new stake in Futu during the first quarter valued at about $27,000. Rockefeller Capital Management L.P. raised its holdings in shares of Futu by 59.2% during the 4th quarter. Rockefeller Capital Management L.P. now owns 226 shares of the company's stock valued at $37,000 after buying an additional 84 shares in the last quarter. Hilton Head Capital Partners LLC purchased a new position in shares of Futu during the 4th quarter valued at about $49,000. Parkside Financial Bank & Trust lifted its position in Futu by 30,000.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 301 shares of the company's stock worth $49,000 after buying an additional 300 shares during the last quarter. Finally, Quarry LP purchased a new stake in Futu in the third quarter worth approximately $51,000.

Futu News Roundup

Here are the key news stories impacting Futu this week:

• Positive Sentiment: One analyst-style article argued that FUTU still looks undervalued, with upside driven by stronger-than-appreciated enterprise services and ECM growth, and said the market may be underestimating future revenue and earnings. Article Title
• Positive Sentiment: Moomoo, Futu’s platform, launched “Moomoo Engine,” a product update that bundles research, options, and technical tools into one system, while Moomoo Canada also expanded its presence with a new flagship store. These are modestly supportive for user growth and brand visibility. Article Title
• Neutral Sentiment: Several articles repeated the same securities class action and deadline reminders, so the news flow itself is largely duplicative but reinforces the legal overhang on the stock. Article Title
• Negative Sentiment: Multiple law firms highlighted a class action accusing Futu of securities fraud, misrepresentations, and undisclosed regulatory compliance failures, which could increase litigation risk and keep sentiment weak. Article Title
• Negative Sentiment: Reports that the U.S. SEC is probing alleged insider trading involving Futu and Tiger Brokers add another regulatory concern and may weigh on investor confidence. Article Title

Analyst Upgrades and Downgrades

Several research firms recently commented on FUTU. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $87.00 target price (down from $300.00) on shares of Futu in a report on Friday, May 22nd. Zacks Research lowered shares of Futu from a "hold" rating to a "strong sell" rating in a research report on Monday, June 8th. Wall Street Zen cut Futu from a "hold" rating to a "sell" rating in a research note on Saturday, May 30th. Jefferies Financial Group reiterated a "buy" rating and issued a $170.50 price objective on shares of Futu in a report on Thursday, May 28th. Finally, The Goldman Sachs Group lowered Futu from a "buy" rating to a "neutral" rating and set a $102.13 target price for the company. 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 assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Futu currently has an average rating of "Moderate Buy" and a consensus target price of $162.80.

Futu Stock Performance

Shares of NASDAQ FUTU opened at $95.04 on Monday. Futu Holdings Limited Sponsored ADR has a 12 month low of $80.50 and a 12 month high of $202.53. The firm has a market capitalization of $13.32 billion, a PE ratio of 10.46, a price-to-earnings-growth ratio of 1.11 and a beta of 0.39. The firm has a fifty day simple moving average of $115.47 and a two-hundred day simple moving average of $142.15.

Futu (NASDAQ:FUTU - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The company reported $0.77 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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, sell-side analysts predict that Futu Holdings Limited Sponsored ADR will post 8.95 earnings per share for the current year.

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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