Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts are cautiously positive on Futu: The stock has an average rating of “Moderate Buy” from 10 brokerages, with an average 1-year price target of about $162.80. Ratings have been mixed, though, with five holds, four buys, and one strong buy.
• Recent earnings disappointed Wall Street: Futu reported EPS of $0.77 versus the $2.89 consensus estimate, and revenue of $694.17 million versus expectations of $761.35 million. Despite that miss, analysts still forecast $10.73 EPS for the current fiscal year.
• There is both growth and regulatory/legal overhang: Futu’s Moomoo platform partnered with Kalshi to expand prediction markets, but the company is also facing securities-law investigations and reports of tighter restrictions on Chinese mainland accounts, which could pressure sentiment and growth.

Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Get Free Report) has earned an average rating of "Moderate Buy" from the ten brokerages that are covering the company, MarketBeat.com reports. Five analysts have rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $162.8043.

FUTU has been the topic of a number of recent research reports. Barclays cut their target price on Futu from $236.00 to $200.00 and set an "overweight" rating on the stock in a research note on Monday, March 16th. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $87.00 target price (down from $300.00) on shares of Futu in a research note on Friday, May 22nd. Zacks Research cut Futu from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 8th. Wall Street Zen cut shares of Futu from a "hold" rating to a "sell" rating in a research note on Saturday, May 30th. Finally, Jefferies Financial Group restated a "buy" rating and set a $170.50 price objective on shares of Futu in a research note on Thursday, May 28th.

Institutional Investors Weigh In On Futu

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its stake in shares of Futu by 58.3% during the first quarter. EverSource Wealth Advisors LLC now owns 1,203 shares of the company's stock valued at $165,000 after purchasing an additional 443 shares in the last quarter. California State Teachers Retirement System grew its holdings in Futu by 1.0% during the first quarter. California State Teachers Retirement System now owns 65,035 shares of the company's stock worth $8,894,000 after acquiring an additional 649 shares during the period. Quantinno Capital Management LP grew its holdings in Futu by 16.0% during the first quarter. Quantinno Capital Management LP now owns 53,197 shares of the company's stock worth $7,275,000 after acquiring an additional 7,343 shares during the period. Lazard Asset Management LLC grew its holdings in Futu by 18.6% during the first quarter. Lazard Asset Management LLC now owns 17,465 shares of the company's stock worth $2,389,000 after acquiring an additional 2,735 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its holdings in Futu by 576.9% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 287,000 shares of the company's stock worth $39,250,000 after acquiring an additional 244,600 shares during the period.

Futu Stock Performance

FUTU stock opened at $92.33 on Friday. The stock has a market capitalization of $12.94 billion, a price-to-earnings ratio of 10.16, a PEG ratio of 0.90 and a beta of 0.40. Futu has a 1 year low of $80.50 and a 1 year high of $202.53. The stock's fifty day moving average is $137.17 and its two-hundred day moving average is $152.46.

Futu (NASDAQ:FUTU - Get Free Report) last posted its earnings results 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 company 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, analysts predict that Futu will post 10.73 EPS for the current fiscal year.

Futu Announces Dividend

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

Trending Headlines about 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

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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