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

Key Points

• Futu Holdings currently has a consensus analyst rating of "Moderate Buy" from 10 covering firms, with an average 12-month price target of about $162.80.
• The stock has seen mixed recent analyst action, including downgrades from Goldman Sachs and Zacks, while firms like Jefferies and Barclays maintained bullish or neutral-leaning views.
• Investor attention is being pressured by regulatory and legal concerns, including class-action allegations tied to CSRC licensing issues and a reported RMB1.85 billion regulatory penalty, even as some commentary says core operating metrics remain solid.

Shares of Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the ten research firms that are presently covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, four have given a hold recommendation, four have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $162.8043.

Several research firms have recently commented on FUTU. The Goldman Sachs Group downgraded Futu from a "buy" rating to a "neutral" rating and set a $102.13 price objective for the company. in a report on Monday, May 25th. Jefferies Financial Group reiterated a "buy" rating and issued a $170.50 target price on shares of Futu in a report on Thursday, May 28th. Zacks Research downgraded shares of Futu from a "hold" rating to a "strong sell" rating in a research report on Monday, June 8th. JPMorgan Chase & Co. restated a "neutral" rating and set a $87.00 price target (down from $300.00) on shares of Futu in a research note on Friday, May 22nd. Finally, Barclays decreased their price target on shares of Futu from $236.00 to $200.00 and set an "overweight" rating for the company in a research note on Monday, March 16th.

Key Futu News

Here are the key news stories impacting Futu this week:

• Positive Sentiment: One analyst note suggested Futu’s core operating metrics remain solid in Q1, indicating the business may still have underlying momentum despite the legal overhang. Can Futu Absorb Its CSRC Penalty Without Losing Momentum?
• Neutral Sentiment: Several law firms, including Rosen, Glancy Prongay Wolke & Rotter, Levi & Korsinsky, Schall, Portnoy, Berger Montague, and KSF, issued notices about the same class action and the August 25, 2026 lead-plaintiff deadline, increasing attention on the case but not adding new operational news.
• Negative Sentiment: Multiple filings allege Futu misled investors during the May 24, 2023 to May 27, 2026 class period and operated without required CSRC licenses, reinforcing concerns about regulatory compliance and potential legal liability. Deadline Alert: Futu Holdings Limited (FUTU) Shareholders Who Lost Money Urged to Contact Glancy Prongay Wolke & Rotter LLP About Securities Fraud Lawsuit
• Negative Sentiment: One report highlighted an approximately RMB1.85 billion regulatory penalty, which could reduce profitability and raise questions about the durability of Futu’s growth. Can Futu Absorb Its CSRC Penalty Without Losing Momentum?

Futu Stock Performance

Futu stock opened at $99.92 on Thursday. The stock has a market capitalization of $14.01 billion, a price-to-earnings ratio of 10.99, a PEG ratio of 1.10 and a beta of 0.39. Futu has a 52-week low of $80.50 and a 52-week high of $202.53. The stock's 50 day moving average price is $118.14 and its two-hundred day moving average price is $143.16.

Futu (NASDAQ:FUTU - Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The company reported $0.77 earnings per share for the quarter, missing the consensus estimate 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%. On average, equities research analysts forecast that Futu will post 8.95 EPS for the current year.

Institutional Investors Weigh In On Futu

Hedge funds and other institutional investors have recently made changes to their positions in the business. Capital International Inc. CA purchased a new stake in shares of Futu in the third quarter worth approximately $39,369,000. Jupiter Asset Management Ltd. boosted its position in shares of Futu by 3,105.3% during the fourth quarter. Jupiter Asset Management Ltd. now owns 60,900 shares of the company's stock valued at $10,000,000 after buying an additional 59,000 shares during the last quarter. OVERSEA CHINESE BANKING Corp Ltd grew its holdings in Futu by 225.8% during the fourth quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 37,648 shares of the company's stock worth $6,182,000 after buying an additional 26,091 shares in the last quarter. Quadrature Capital Ltd grew its holdings in Futu by 818.0% during the third quarter. Quadrature Capital Ltd now owns 211,407 shares of the company's stock worth $36,766,000 after buying an additional 188,379 shares in the last quarter. Finally, Trivest Advisors Ltd raised its position in Futu by 2.5% in the 4th quarter. Trivest Advisors Ltd now owns 540,000 shares of the company's stock valued at $88,673,000 after buying an additional 13,200 shares during the last quarter.

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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