Zacks Research Downgrades Futu (NASDAQ:FUTU) to Strong Sell

Futu (NASDAQ:FUTU) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Monday,Zacks.com reports.

Several other research firms also recently commented on FUTU. Barclays decreased their price target on shares of Futu from $236.00 to $200.00 and set an “overweight” rating on the stock in a research note on Monday, March 16th. Wall Street Zen downgraded shares of Futu from a “hold” rating to a “sell” rating in a research note on Saturday, May 30th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $87.00 price objective (down from $300.00) on shares of Futu in a research note on Friday, May 22nd. Jefferies Financial Group reiterated a “buy” rating and set a $170.50 price objective on shares of Futu in a research note on Thursday, May 28th. Finally, The Goldman Sachs Group downgraded shares of 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. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Futu currently has an average rating of “Moderate Buy” and an average target price of $162.80.

Futu Stock Performance

FUTU stock opened at $91.31 on Monday. The company’s 50-day simple moving average is $135.41 and its 200 day simple moving average is $151.28. Futu has a 52 week low of $80.50 and a 52 week high of $202.53. The company has a market capitalization of $12.80 billion, a PE ratio of 10.05, a price-to-earnings-growth ratio of 1.07 and a beta of 0.40.

Futu (NASDAQ:FUTU) last released its quarterly earnings results on Thursday, May 28th. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $2.89 by ($2.12). Futu had a net margin of 41.87% and a return on equity of 26.48%. The business had revenue of $694.17 million during the quarter, compared to analyst estimates of $761.35 million. On average, analysts forecast that Futu will post 8.95 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. CoreCap Advisors LLC raised its holdings in Futu by 2.8% in the 4th quarter. CoreCap Advisors LLC now owns 2,455 shares of the company’s stock valued at $403,000 after buying an additional 68 shares during the last quarter. Lifestyle Asset Management Inc. raised its holdings in Futu by 2.2% in the 4th quarter. Lifestyle Asset Management Inc. now owns 3,420 shares of the company’s stock valued at $562,000 after buying an additional 72 shares during the last quarter. Orion Porfolio Solutions LLC raised its holdings in Futu by 3.3% in the 4th quarter. Orion Porfolio Solutions LLC now owns 2,391 shares of the company’s stock valued at $393,000 after buying an additional 77 shares during the last quarter. Diversify Wealth Management LLC raised its holdings in Futu by 0.9% in the 3rd quarter. Diversify Wealth Management LLC now owns 8,962 shares of the company’s stock valued at $1,559,000 after buying an additional 83 shares during the last quarter. Finally, Personal CFO Solutions LLC raised its holdings in Futu by 5.1% in the 4th quarter. Personal CFO Solutions LLC now owns 1,713 shares of the company’s stock valued at $281,000 after buying an additional 83 shares during the last quarter.

Trending Headlines about Futu

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Barclays reiterated a Buy rating on Futu Holdings Limited (FUTU), which may help support sentiment despite the broader negative news flow. Futu Holdings (FUTU) Receives a Buy from Barclays
• Neutral Sentiment: Short interest in Futu rose sharply in May, showing that bearish bets increased materially; while not a direct catalyst, it signals growing skepticism and can add volatility.
• Negative Sentiment: Japan’s watchdog reportedly seeks penalties against Futu’s Moomoo unit, adding a fresh regulatory overhang and heightening investor concern about operations in a key market. Japan Watchdog Seeks Penalties Against Futu’s Moomoo Unit
• Negative Sentiment: Multiple law firms, including Rosen, Kirby McInerney, Kahn Swick & Foti, and Schall, announced securities investigations tied to alleged misleading business information, increasing litigation risk for Futu Holdings Limited (FUTU). Futu Investor News: If You Have Suffered Losses in Futu Holdings Limited (NASDAQ: 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.