Futu (NASDAQ:FUTU) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Futu from “strong sell” to “hold,” while analysts remain divided; the stock has an overall “Moderate Buy” rating and an average price target of $162.80.
• Futu shares opened at $101.84, well below their 52-week high of $202.53. The company’s latest quarter missed estimates, reporting EPS of $0.77 versus $2.89 expected and revenue of $694.17 million versus $761.35 million forecast.
• Futu expanded access to international markets through a partnership allowing clients to trade Korean stocks, but it also faces investor class-action notices alleging undisclosed regulatory-compliance failures, with a lead-plaintiff deadline of August 25, 2026.

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

A number of other equities research analysts have also recently weighed in on the company. Jefferies Financial Group reaffirmed a "buy" rating and set a $170.50 price target on shares of Futu in a report on Thursday, May 28th. The Goldman Sachs Group lowered Futu from a "buy" rating to a "neutral" rating and set a $102.13 price objective on the stock. in a research note on Monday, May 25th. Wall Street Zen cut Futu from a "hold" rating to a "sell" rating in a report on Saturday, May 30th. Finally, JPMorgan Chase & Co. restated 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. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $162.80.

Futu Trading Down 2.3%

• Futu Holdings NASDAQ: FUTU Stock: Is the Chinese Fintech Company a Buy?

Shares of Futu stock opened at $101.84 on Monday. The stock has a market capitalization of $14.27 billion, a price-to-earnings ratio of 11.20, a P/E/G ratio of 1.22 and a beta of 0.39. The firm's 50-day moving average price is $99.01 and its two-hundred day moving average price is $133.89. Futu has a 1-year low of $80.50 and a 1-year high of $202.53.

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 firm 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, equities research analysts predict that Futu will post 8.95 EPS for the current year.

Institutional Trading of Futu

Hedge funds and other institutional investors have recently modified their holdings of the stock. V Square Quantitative Management LLC acquired a new position in Futu during the 1st quarter worth $25,000. Rockefeller Capital Management L.P. boosted its position in Futu by 59.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 226 shares of the company's stock valued at $37,000 after buying an additional 84 shares during the last quarter. Geneos Wealth Management Inc. acquired a new stake in shares of Futu in the 1st quarter valued at $27,000. Quarry LP acquired a new stake in shares of Futu in the 3rd quarter valued at $51,000. Finally, Hilton Head Capital Partners LLC bought a new stake in shares of Futu during the fourth quarter worth $49,000.

Trending Headlines about Futu

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Futu expanded international market access through a partnership with Hana Securities, enabling Futu clients to trade Korean stocks. The initiative could broaden product offerings, support customer engagement and create additional growth opportunities. Hana Securities opens Korean stock trading to Futu clients
• Neutral Sentiment: Multiple law firms, including Pomerantz, Rosen, Berger Montague, Faruqi & Faruqi and others, reminded investors that the lead-plaintiff deadline for the pending lawsuit is August 25, 2026. The notices primarily seek investor participation and do not represent a court finding that Futu violated securities laws. Pomerantz investor alert
• Negative Sentiment: The class action covers investors who purchased Futu securities from May 24, 2023, through May 27, 2026, and alleges violations of U.S. securities laws tied to undisclosed regulatory-compliance failures. One law firm described an approximately 32% stock decline during the relevant period. If the claims advance, Futu could face litigation costs, damages and heightened regulatory scrutiny. Futu securities fraud class action notice
• Negative Sentiment: Futu’s latest reported quarter compounded the concerns: earnings per share came in at $0.77 versus a $2.89 consensus estimate, while revenue of $694.17 million fell short of the $761.35 million forecast. The earnings miss may reinforce investor caution about operating momentum and near-term profitability.

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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