Freedom (NASDAQ:FRHC) Trading Down 6.5% - Should You Sell?

Key Points

• Freedom Holding Corp. shares fell 6.5% in mid-day trading Monday, with volume running well below average as the stock dropped from a prior close of $166.09 to around $155.
• Analyst sentiment remains cautious: KeyCorp reiterated a “market perform” rating, Weiss Ratings upgraded the stock to “hold,” and the consensus price target is $138.00.
• The company recently posted mixed earnings, missing EPS estimates by a wide margin but beating revenue expectations, while insiders also sold shares in recent transactions.

Shares of Freedom Holding Corp. (NASDAQ:FRHC - Get Free Report) dropped 6.5% during mid-day trading on Monday . The stock traded as low as $156.30 and last traded at $155.27. Approximately 72,553 shares traded hands during trading, a decline of 45% from the average session volume of 132,433 shares. The stock had previously closed at $166.09.

Wall Street Analyst Weigh In

FRHC has been the subject of several research analyst reports. KeyCorp reiterated a "market perform" rating on shares of Freedom in a research note on Friday, June 5th. Weiss Ratings raised shares of Freedom from a "sell (d+)" rating to a "hold (c)" rating in a report on Tuesday, June 2nd. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $138.00.

Freedom Stock Performance

The company has a fifty day moving average of $144.69 and a two-hundred day moving average of $137.59. The stock has a market capitalization of $9.85 billion, a P/E ratio of 62.88 and a beta of 0.68. The company has a debt-to-equity ratio of 0.03, a current ratio of 1.03 and a quick ratio of 1.03.

Freedom (NASDAQ:FRHC - Get Free Report) last released its earnings results on Tuesday, June 2nd. The company reported $0.13 EPS for the quarter, missing analysts' consensus estimates of $0.87 by ($0.74). Freedom had a return on equity of 11.50% and a net margin of 7.00%.The firm had revenue of $486.15 million for the quarter, compared to the consensus estimate of $124.14 million.

Insiders Place Their Bets

In other Freedom news, CTO Renat Tukanov sold 1,800 shares of the stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $140.82, for a total transaction of $253,476.00. Following the sale, the chief technology officer directly owned 10,200 shares of the company's stock, valued at approximately $1,436,364. This represents a 15.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Andrew Gamble sold 357 shares of the firm's stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $141.04, for a total transaction of $50,351.28. Following the completion of the transaction, the director owned 677 shares in the company, valued at approximately $95,484.08. The trade was a 34.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 18,957 shares of company stock valued at $2,915,891 over the last 90 days. 70.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Freedom

Institutional investors and hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd boosted its stake in Freedom by 290.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 207 shares of the company's stock valued at $25,000 after acquiring an additional 154 shares during the period. Parallel Advisors LLC lifted its holdings in shares of Freedom by 476.2% in the 1st quarter. Parallel Advisors LLC now owns 363 shares of the company's stock worth $53,000 after purchasing an additional 300 shares during the last quarter. Wells Fargo & Company MN boosted its position in Freedom by 111.7% during the 4th quarter. Wells Fargo & Company MN now owns 506 shares of the company's stock valued at $62,000 after purchasing an additional 267 shares during the period. CoreCap Advisors LLC bought a new position in Freedom during the 2nd quarter worth $78,000. Finally, Royal Bank of Canada grew its stake in Freedom by 67.2% during the 1st quarter. Royal Bank of Canada now owns 587 shares of the company's stock worth $85,000 after buying an additional 236 shares during the last quarter. Institutional investors and hedge funds own 1.26% of the company's stock.

About Freedom

Freedom Holding Corp NASDAQ: FRHC is a diversified financial services holding company that provides a broad range of brokerage, trading, investment banking, and asset management services. Through its subsidiaries, the company caters to retail, institutional, and corporate clients by offering access to global capital markets, equity and fixed-income trading, and research-driven investment strategies.

The firm's product suite includes online and over-the-counter brokerage platforms, margin lending, securities underwriting, and M&A advisory services.

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