Futu (NASDAQ:FUTU) Shares Down 4.8% - Time to Sell?

Key Points

• Futu shares fell 4.8% to about $101.35 in Friday trading, on volume 60% below the average. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a consensus “Hold” rating, with two Buy ratings and four Holds; the average price target of $139.91 implies substantial potential upside.
• Futu recently exceeded quarterly expectations, reporting $3.33 EPS versus $2.98 expected and $852.66 million in revenue versus $786.07 million forecast, while posting a 42.95% net margin.

Shares of Futu Holdings Limited Sponsored ADR (NASDAQ:FUTU - Get Free Report) were down 4.8% on Friday. The stock traded as low as $102.00 and last traded at $101.3450. 851,703 shares traded hands during trading, a decline of 60% from the average daily volume of 2,120,242 shares. The stock had previously closed at $106.43.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on FUTU shares. Zacks Research upgraded shares of Futu from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. Weiss Ratings restated a "hold (c+)" rating on shares of Futu in a report on Friday, September 25th. Finally, Wall Street Zen upgraded shares of Futu from a "sell" rating to a "hold" rating in a research report on Saturday, August 22nd. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $139.91.

Futu Stock Down 3.6%

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

The firm's 50-day moving average price is $112.13 and its two-hundred day moving average price is $119.03. The firm has a market capitalization of $14.38 billion, a PE ratio of 10.17, a P/E/G ratio of 1.23 and a beta of 0.46.

Futu (NASDAQ:FUTU - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The company reported $3.33 EPS for the quarter, beating the consensus estimate of $2.98 by $0.35. Futu had a net margin of 42.95% and a return on equity of 28.20%. The business had revenue of $852.66 million during the quarter, compared to the consensus estimate of $786.07 million. Equities research analysts forecast that Futu Holdings Limited Sponsored ADR will post 9.47 EPS for the current year.

Institutional Trading of Futu

Several hedge funds and other institutional investors have recently modified their holdings of FUTU. Sequoia Financial Advisors LLC boosted its position in Futu by 7.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 4,797 shares of the company's stock worth $450,000 after acquiring an additional 315 shares during the period. Nykredit A S acquired a new position in shares of Futu in the 2nd quarter valued at about $1,607,000. Corient Private Wealth LP increased its holdings in shares of Futu by 39.9% in the 2nd quarter. Corient Private Wealth LP now owns 2,428 shares of the company's stock valued at $228,000 after purchasing an additional 693 shares during the period. Greenwoods Asset Management Hong Kong Ltd. lifted its position in shares of Futu by 9.8% in the second quarter. Greenwoods Asset Management Hong Kong Ltd. now owns 1,093,634 shares of the company's stock worth $102,517,000 after purchasing an additional 97,286 shares in the last quarter. Finally, SkyOak Wealth LLC purchased a new stake in shares of Futu in the second quarter worth approximately $207,000.

About Futu

Futu Holdings Limited is a technology-driven financial services company that operates online brokerage and wealth-management platforms. Founded in 2012 and headquartered in Hong Kong, the company provides digital tools designed to help individual investors access securities markets, manage portfolios and obtain investment information.

Its principal platforms include Futubull and Moomoo, which offer services such as stock and exchange-traded fund trading, margin financing, market data, research, news, portfolio management and investor education.

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