Futu (NASDAQ:FUTU) Trading Down 12.2% - Here's What Happened

Key Points

• Share price plunge: Futu shares fell about 12.2% to $147.55 on Thursday (trading as low as $150.00), with volume of ~1.79M shares — roughly 20% above the average session volume.
• Analyst outlook: The stock carries an average "Buy" rating and an average target of $209.17, though Barclays trimmed its target to $200 and Goldman Sachs set $205.
• Financials & dividend: Futu has a market cap of ~$20.3B, a trailing P/E of 14.09 and strong profitability (net margin ~49.6%, ROE ~32.2%), and paid a special dividend of $2.60 per share on April 29.

Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Get Free Report) fell 12.2% on Thursday . The company traded as low as $150.00 and last traded at $147.5510. 1,790,767 shares were traded during mid-day trading, an increase of 20% from the average session volume of 1,497,427 shares. The stock had previously closed at $168.00.

Analyst Ratings Changes

A number of brokerages recently weighed in on FUTU. Weiss Ratings restated a "hold (c+)" rating on shares of Futu in a report on Thursday, January 22nd. The Goldman Sachs Group set a $205.00 price objective on shares of Futu in a report on Monday. Finally, Barclays decreased their price objective on shares of Futu from $236.00 to $200.00 and set an "overweight" rating for the company in a report on Monday, March 16th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Futu currently has an average rating of "Buy" and an average target price of $209.17.

Futu Trading Down 13.8%

The firm has a market capitalization of $20.31 billion, a PE ratio of 14.09, a price-to-earnings-growth ratio of 0.90 and a beta of 0.52. The business's 50 day simple moving average is $149.39 and its two-hundred day simple moving average is $162.13.

Futu (NASDAQ:FUTU - Get Free Report) last announced its earnings results on Sunday, February 15th. The company reported $3.07 earnings per share for the quarter. The business had revenue of $771.00 million during the quarter. Futu had a net margin of 49.63% and a return on equity of 32.24%. As a group, equities research analysts anticipate that Futu Holdings Limited Sponsored ADR will post 11.95 earnings per share for the current year.

Futu Dividend Announcement

The business also recently announced a special dividend, which was paid on Wednesday, April 29th. Shareholders of record on Thursday, April 16th were paid a dividend of $2.60 per share. The ex-dividend date was Thursday, April 16th. Futu's payout ratio is currently 24.81%.

Institutional Investors Weigh In On Futu

A number of hedge funds have recently modified their holdings of FUTU. AQR Capital Management LLC bought a new stake in shares of Futu during the 1st quarter valued at $235,000. Jones Financial Companies Lllp grew its position in shares of Futu by 442.4% during the 1st quarter. Jones Financial Companies Lllp now owns 640 shares of the company's stock valued at $66,000 after acquiring an additional 522 shares during the period. Goldman Sachs Group Inc. grew its position in shares of Futu by 3.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 459,175 shares of the company's stock valued at $46,997,000 after acquiring an additional 16,255 shares during the period. Geneos Wealth Management Inc. bought a new stake in shares of Futu during the 1st quarter valued at $27,000. Finally, American Century Companies Inc. grew its position in shares of Futu by 9.2% during the 2nd quarter. American Century Companies Inc. now owns 9,905 shares of the company's stock valued at $1,224,000 after acquiring an additional 836 shares during the period.

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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