Futu (NASDAQ:FUTU) Posts Quarterly Earnings Results, Beats Expectations By $0.33 EPS

Key Points

• Futu surpassed earnings expectations with reported EPS of $2.32, exceeding the consensus estimate of $1.99 by $0.33.
• The company has seen a return on equity of 23.07% and a net margin of 41.74%, indicating strong profitability.
• Several analysts have upgraded their target prices for Futu, with Bank of America raising its target to $143.90 and Daiwa Capital setting theirs at $190.00.

Futu (NASDAQ:FUTU - Get Free Report) announced its earnings results on Wednesday. The company reported $2.32 EPS for the quarter, beating analysts' consensus estimates of $1.99 by $0.33, Zacks reports. Futu had a return on equity of 26.36% and a net margin of 44.25%.The company had revenue of $676.47 million during the quarter, compared to analysts' expectations of $539.76 million.

Futu Stock Performance

FUTU stock traded up $10.19 during mid-day trading on Friday, reaching $190.64. The company had a trading volume of 3,101,088 shares, compared to its average volume of 2,333,797. The company has a market capitalization of $26.53 billion, a price-to-earnings ratio of 26.44, a price-to-earnings-growth ratio of 1.18 and a beta of 0.49. The firm has a fifty day simple moving average of $147.12 and a 200 day simple moving average of $118.65. Futu has a fifty-two week low of $56.22 and a fifty-two week high of $194.32.

Institutional Investors Weigh In On Futu

A number of hedge funds have recently bought and sold shares of the stock. Caxton Associates LLP acquired a new stake in Futu in the 2nd quarter valued at about $387,000. Public Sector Pension Investment Board raised its position in Futu by 9.3% in the 2nd quarter. Public Sector Pension Investment Board now owns 49,514 shares of the company's stock valued at $6,119,000 after purchasing an additional 4,200 shares in the last quarter. Evergreen Capital Management LLC acquired a new stake in Futu in the 2nd quarter valued at about $202,000. Rakuten Securities Inc. raised its position in shares of Futu by 21.8% during the 2nd quarter. Rakuten Securities Inc. now owns 1,273 shares of the company's stock worth $157,000 after acquiring an additional 228 shares in the last quarter. Finally, Tidal Investments LLC raised its position in shares of Futu by 22.9% during the 2nd quarter. Tidal Investments LLC now owns 13,293 shares of the company's stock worth $1,643,000 after acquiring an additional 2,473 shares in the last quarter.

Analysts Set New Price Targets

A number of brokerages recently commented on FUTU. Daiwa America upgraded Futu to a "strong-buy" rating in a report on Tuesday, August 12th. Bank of America raised their target price on Futu from $172.00 to $200.00 and gave the company a "buy" rating in a report on Thursday. Citigroup raised their target price on Futu from $176.00 to $190.00 and gave the company a "neutral" rating in a report on Thursday. Daiwa Capital Markets began coverage on Futu in a report on Monday, August 11th. They set a "buy" rating and a $190.00 target price for the company. Finally, Barclays raised their target price on Futu from $176.00 to $232.00 and gave the company an "overweight" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $176.14.

Futu Company Profile

Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin financing and fund distribution services through its Futubull and Moomoo digital platforms.