Futu (NASDAQ:FUTU) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Futu from “hold” to “strong sell,” adding to a wave of mixed-to-negative analyst sentiment around the stock. Other firms have also cut ratings or price targets recently, though the consensus remains “Moderate Buy.”
• Futu’s latest earnings missed expectations, with quarterly EPS of $0.77 versus the $2.89 estimate and revenue of $694.17 million below forecasts. The company still posted strong profitability metrics, including a 41.87% net margin and 26.48% return on equity.
• The stock is under pressure from broader concerns, including rising short interest, a reported regulatory probe in Japan involving its Moomoo unit, and multiple securities investigations. Despite these headwinds, the shares were up slightly on the day and opened at $91.31.

Futu (NASDAQ:FUTU - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday,Zacks.com reports.

FUTU has been the topic of a number of other research reports. Barclays dropped their price objective on Futu from $236.00 to $200.00 and set an "overweight" rating on the stock in a report on Monday, March 16th. The Goldman Sachs Group downgraded Futu from a "buy" rating to a "neutral" rating and set a $102.13 price objective on the stock. in a report on Monday, May 25th. Wall Street Zen downgraded Futu from a "hold" rating to a "sell" rating in a report on Saturday, May 30th. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $87.00 price objective (down from $300.00) on shares of Futu in a report on Friday, May 22nd. Finally, 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. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Futu currently has a consensus rating of "Moderate Buy" and a consensus target price of $162.80.

Futu Trading Up 0.3%

FUTU opened at $91.31 on Monday. The stock's 50-day moving average price is $135.41 and its 200 day moving average price is $151.28. Futu has a 12-month low of $80.50 and a 12-month high of $202.53. The firm has a market cap of $12.80 billion, a price-to-earnings ratio of 10.05, a PEG ratio of 1.07 and a beta of 0.40.

Futu (NASDAQ:FUTU - Get Free Report) last posted its quarterly 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 analyst estimates of $761.35 million. Futu had a net margin of 41.87% and a return on equity of 26.48%. On average, research analysts forecast that Futu will post 8.95 earnings per share for the current year.

Institutional Trading of Futu

A number of hedge funds have recently added to or reduced their stakes in FUTU. CoreCap Advisors LLC lifted its holdings in shares of Futu by 2.8% in the 4th quarter. CoreCap Advisors LLC now owns 2,455 shares of the company's stock valued at $403,000 after buying an additional 68 shares during the period. Lifestyle Asset Management Inc. boosted its position in Futu by 2.2% during the fourth quarter. Lifestyle Asset Management Inc. now owns 3,420 shares of the company's stock worth $562,000 after purchasing an additional 72 shares in the last quarter. Orion Porfolio Solutions LLC grew its holdings in Futu by 3.3% in the fourth quarter. Orion Porfolio Solutions LLC now owns 2,391 shares of the company's stock valued at $393,000 after purchasing an additional 77 shares during the last quarter. Diversify Wealth Management LLC grew its holdings in Futu by 0.9% in the third quarter. Diversify Wealth Management LLC now owns 8,962 shares of the company's stock valued at $1,559,000 after purchasing an additional 83 shares during the last quarter. Finally, Personal CFO Solutions LLC increased its position in shares of Futu by 5.1% in the fourth quarter. Personal CFO Solutions LLC now owns 1,713 shares of the company's stock valued at $281,000 after buying an additional 83 shares in the last quarter.

Trending Headlines about Futu

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Barclays reiterated a Buy rating on Futu Holdings Limited (FUTU), which may help support sentiment despite the broader negative news flow. Futu Holdings (FUTU) Receives a Buy from Barclays
• Neutral Sentiment: Short interest in Futu rose sharply in May, showing that bearish bets increased materially; while not a direct catalyst, it signals growing skepticism and can add volatility.
• Negative Sentiment: Japan’s watchdog reportedly seeks penalties against Futu’s Moomoo unit, adding a fresh regulatory overhang and heightening investor concern about operations in a key market. Japan Watchdog Seeks Penalties Against Futu’s Moomoo Unit
• Negative Sentiment: Multiple law firms, including Rosen, Kirby McInerney, Kahn Swick & Foti, and Schall, announced securities investigations tied to alleged misleading business information, increasing litigation risk for Futu Holdings Limited (FUTU). Futu Investor News: If You Have Suffered Losses in Futu Holdings Limited NASDAQ: FUTU...

About Futu

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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