Futu (NASDAQ:FUTU) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Futu from “hold” to “sell,” adding to a wave of cautious analyst calls. The stock now has a consensus rating of “Moderate Buy,” but several firms have recently cut targets or lowered ratings.
• Futu missed Q1 expectations, reporting earnings of $0.77 per share versus $2.89 expected and revenue of $694.17 million versus $761.35 million estimated. The miss highlights near-term pressure despite strong profitability metrics.
• Shares have been under pressure, with the stock opening at $104.07 and trading well below its 50-day and 200-day moving averages. Investor concerns are also being weighed by regulatory and legal overhangs in China.

Futu (NASDAQ:FUTU - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Several other analysts also recently weighed in on the company. Zacks Research downgraded Futu from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 8th. Barclays cut their price target 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. restated a "neutral" rating and issued a $87.00 price target (down from $300.00) on shares of Futu in a research note on Friday, May 22nd. The Goldman Sachs Group downgraded Futu from a "buy" rating to a "neutral" rating and set a $102.13 price target on the stock. in a research note on Monday. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $170.50 price objective on shares of Futu in a research report on Thursday. One research 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. According to MarketBeat.com, Futu presently has an average rating of "Moderate Buy" and a consensus price target of $162.80.

Futu Stock Down 0.8%

Futu stock opened at $104.07 on Friday. The company has a market capitalization of $14.59 billion, a P/E ratio of 11.45, a PEG ratio of 0.78 and a beta of 0.52. The stock's 50 day moving average is $141.30 and its 200 day moving average is $155.37. Futu has a twelve month low of $80.50 and a twelve month high of $202.53.

Futu (NASDAQ:FUTU - Get Free Report) last posted its quarterly earnings results 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 analysts' expectations of $761.35 million. Futu had a return on equity of 27.28% and a net margin of 41.87%. As a group, equities analysts expect that Futu will post 11.07 EPS for the current year.

Hedge Funds Weigh In On Futu

Several hedge funds and other institutional investors have recently modified their holdings of FUTU. V Square Quantitative Management LLC bought a new position in Futu in the 1st quarter worth $25,000. Geneos Wealth Management Inc. bought a new position in Futu in the 1st quarter worth $27,000. Rockefeller Capital Management L.P. raised its holdings in Futu by 59.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 226 shares of the company's stock worth $37,000 after purchasing an additional 84 shares during the period. Hilton Head Capital Partners LLC bought a new position in Futu in the 4th quarter worth $49,000. Finally, Parkside Financial Bank & Trust raised its holdings in Futu by 30,000.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 301 shares of the company's stock worth $49,000 after purchasing an additional 300 shares during the period.

More Futu News

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Futu said it repurchased about US$418 million of ADSs under its buyback program, signaling management confidence and providing some support to the stock. Futu Announces Cumulative Repurchases of Approximately US$418 Million Worth of ADSs Under Share Repurchase Program
• Positive Sentiment: The company’s first-quarter update highlighted revenue growth of about 25% year over year and continued client expansion, which points to solid underlying business momentum despite the share-price weakness. Moomoo's Parent Company Futu Releases Q1 2026 Results: Revenues up 25% YoY to US$746.9 million
• Neutral Sentiment: Management also guided to 800,000 net new funding accounts in 2026 and said Malaysia could reach breakeven in 6 to 12 months, which supports a longer-term growth story but does not offset near-term concerns. Futu targets 800,000 net new funding accounts in 2026 while expecting Malaysia to reach breakeven in 6 to 12 months
• Neutral Sentiment: Futu’s earnings call transcript and related coverage reflect continued investor focus on the quarterly results and management commentary. Futu Holdings Limited (FUTU) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Futu missed Q1 expectations, reporting EPS of $0.77 versus $2.89 expected and revenue of $694.17 million versus $761.35 million estimated, a clear earnings disappointment that can weigh on the stock. Futu earnings report
• Negative Sentiment: Fresh reports that China regulators may impose a RMB 1.85 billion penalty, along with disclosures about major mainland China revenue exposure, have intensified fears about regulatory and geopolitical risk. Why Futu Holdings (FUTU) Is Down 11.6% After China Regulator Proposes RMB 1.85 Billion Penalty
• Negative Sentiment: Multiple law firms have launched securities-fraud or class-action investigations into Futu, increasing legal overhang and adding to investor uncertainty. ROSEN, A LEADING LAW FIRM, Encourages Futu Holdings Limited Investors to Inquire About Securities Class Action Investigation - 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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