Futu (NASDAQ:FUTU) Trading Down 5.8% - Here's Why

Key Points

• Futu Holdings (NASDAQ:FUTU) experienced a significant drop of 5.8% in stock value, trading at $167.70 after peaking earlier at $177.99, with trading volume decreasing by 51% from average levels.
• Brokerages have varying outlooks on Futu, with Citigroup raising its target price to $190.00 and others like JPMorgan Chase increasing their target to $270.00, reflecting a mostly positive sentiment with multiple upgrades.
• Several institutional investors have increased their stakes in Futu, including Osaic Holdings, which boosted its ownership by over 522% in the second quarter, indicating growing confidence in the company.

Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Get Free Report) was down 5.8% during trading on Monday . The company traded as low as $167.75 and last traded at $167.70. Approximately 1,295,511 shares were traded during trading, a decline of 51% from the average daily volume of 2,622,386 shares. The stock had previously closed at $177.99.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on FUTU. Citigroup upped their target price on Futu from $176.00 to $190.00 and gave the stock a "neutral" rating in a research note on Thursday, August 21st. JPMorgan Chase & Co. increased their price objective on Futu from $200.00 to $270.00 and gave the company an "overweight" rating in a research report on Thursday, August 28th. Bank of America increased their price objective on Futu from $172.00 to $200.00 and gave the company a "buy" rating in a research report on Thursday, August 21st. Dbs Bank upgraded Futu to a "moderate buy" rating in a report on Thursday, September 4th. Finally, Daiwa America upgraded Futu to a "strong-buy" rating in a report on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Buy" and an average price target of $190.43.

Futu Trading Down 5.7%

The company has a market cap of $23.35 billion, a PE ratio of 23.30, a PEG ratio of 0.79 and a beta of 0.57. The stock has a 50 day moving average price of $171.02 and a 200 day moving average price of $128.68.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. increased its holdings in shares of Futu by 522.6% in the 2nd quarter. Osaic Holdings Inc. now owns 853 shares of the company's stock worth $105,000 after purchasing an additional 716 shares in the last quarter. Orion Porfolio Solutions LLC grew its holdings in Futu by 16.2% during the second quarter. Orion Porfolio Solutions LLC now owns 2,659 shares of the company's stock valued at $329,000 after purchasing an additional 370 shares during the period. Marex Group plc bought a new stake in Futu during the second quarter valued at about $1,550,000. State of Wyoming bought a new stake in Futu during the second quarter valued at about $503,000. Finally, Nomura Holdings Inc. grew its holdings in Futu by 45.5% during the second quarter. Nomura Holdings Inc. now owns 100,066 shares of the company's stock valued at $12,367,000 after purchasing an additional 31,310 shares during the period.

About Futu

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.

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